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Federal Reserve Bank of St. Louis

b a n k in g

in the


"At MNB we will respond quickly and
accurately to your needs for overlines
and liquidity loans. Because we
realize the way these transactions are
handled can have a critical impact on
operational procedures and your abil­
ity to serve customers.
"O ur first priority is to provide
superior customer service. To be a
partner in helping meet challenges
and goals. We begin by developing an
in-depth knowledge of each individ­
ual correspondent bank's objectives.
Then, we provide our expertise and a
wide range of services to help attain

these goals w ith profitable results.
"By consistently delivering a high
level of performance and generating
fresh new approaches to fulfilling
needs, we are able to build confidence
and that special bond of trust that
comes from working and succeeding
Learn more about how MNB can
work for you. Call 319/398-4320 or toll
free, 1-800-332-5991 and talk to Terry
or any of our other MNB
Correspondent Bankers: John E.
Mangold, Stan R. Farmer, Jerry N.
Trudo or Dale C. Froehlich.

Merchants National Bank is i

Cedar Rapids, Iowa 52401



M ember F.D.I.C
Federal Reserve Bank of St. Louis

Teddy Roosevelt
charges up San Juan Hill.
Street-comer urchins soft-shoe
to “Sweet Rosie O 'Grady.”
and the Limerick National

lO y O .

Rank of Maine names a
woman president.

America gets its first woman bank president.

\V \
n \



- / -~

It was the turn of the
century and a woman’s place
was thought to be in the home.
Frances Moulton (shown in
the photograph with her
family) thought otherw ise. So
did the Limerick National
Hank of Maine. Frances
Moulton served as their
president until 1919. Unheard
of- A first on many fronts—
not the least of which was
the American banking scene.
And it was just four
years earlier, in 1915, that a
small company in St. Paul
took an unheard of approach
to printing checks.
Deluxe Check Printers.
The first standardized,
checks-only printing source
specializing in quick service.
In all respects, the first of
its kind.
More than 65 years
later, we’re still committed to
innovation. Committed to
setting the standards.
We salute you, Frances
Moulton. You knew what it
was to set standards. We know
too. How well we know;


Setting the Standards.
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis





In-bank processing barriers shattered.
Nowin-house control within reach
of any bank-affordably.
I DP: Y e ars in th e
m a k in g

C o m p le te in -b an k d a ta
pro cessin g c a p a b ility

Years of comprehensive
research and development
now enable us to offer you
the latest technology in data
entry and proof operations
PROCESSING. Now you can
have all the benefits of in-bank
control plus the economics of
regional processing.

IDP gives you complete inhouse processing capability
using U.S. National's program­
ming expertise and personnel.
You’ll have direct on-premise
control of your operation—
along with better cash and float
management, improved secur­
ity, lower labor costs and
increased productivity.

We'd like to prove IDP is an
affordable alternative for your
bank's processing needs. We ll
assess your current volumes
and help you choose the right
equipment whether it be on-line
proof, the IBM 3694, the NCR
7750, or the IBM System 34.
In short, we will work to design
and install an affordable sys­
tem that fits your bank.

Join th e evolution!
No m o re c o u rie r co s ts
or m a n d a te d s c h e d u le s
With IDP, entry data is cap­
tured at proof and transmitted
electronically to us for proc­
essing. Reports are printed in
your bank. This courierless
system means you’ll no longer
be dependent upon data proc­
essor schedules or courier
timetables. That means you
set your cutoff times to fit the
needs of your customers.

If you want more control over
your operations, get IN-BANK
(IDP)— available now from
U.S. National and our affiliate
Northwest Computer Services.

IDP is here now, ahead of its
time, and is right for your bank.
If you’d like to join the evolution,
call us today at 402/536-2072.

US National b a n k
Member FDIC
Federal Reserve Bank of St. Louis

c U.S. National Bank 1980


JANUARY 1981 • 88th Year • No. 1408





Correspondent bankers look ahead

City correspondent bank officials look at the role of the correspondent bank
system in view of the new Federal Reserve System rules governing reserves for all
banks, as well as the Fed’s new pricing schedule for its services. In addition, they
look at other facets of correspondent service, with an eye to future developments.


15A Correspondent bankers get T.I.P.S.
ABA division discusses future of correspondent banking


Predict better business

Special report on First of Chicago Conference— Malcolm Freeland


Observes 125th anniversary

Mercantile Trust, St. Louis, built on history


Bank Promotions
Corporate News
Twin Cities
South Dakota
North Dakota


Gp. 1 Program
Des Moines
Business Trends

30615th Street, Des Moines, Iowa50309

Phone (515) 244-8163



Business Manager

Malcolm K. Freeland

Ben Haller, Jr.

Mike Freeland

Associate Editor
Louise Ritchhart


Field Representative

Field Representative

Debbie Hibbert

Glen Hicks

Paul Masters

No. 1408Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office.
Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address.
Banker, January, 1981
Federal Reserve Bank of St. Louis


Carroll McEntee & McGinley

is pleased to announce
the formation of

CM&M Group, Inc.
(a holding company)

Geo. B. Gibbons & Company, Inc.
Carroll McEntee & McGinley, Inc.
Eagle Income Management Company, Inc.
Carmcley Corp.
Shorcan International Brokers, Ltd.
CM&M Futures, Inc.
(Toronto, Canada)
Landart Systems, Inc.
American Interest Arbitrage Corporation


_ _


40 Wall Street, New York, N Y. 10005
(212) 825-6780

Atlanta, Georgia, Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Houston, Texas,
Los Angeles, California, Philadelphia, Pennsylvania, San Francisco, California.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981



Convention Calendar

ABA—American Bankers Association
AIB—American Institute of Banking
BAI— Bank Administration Institute
BMA— Bank Marketing Association
IBAA— Independent Bankers Association
of America
NABW— National Association of Bank
Women, Inc.
RMA— Robert Morris Associates

National Conventions & Schools
Jan. 18-20—ABA International Banking
Conference, Grand Hyatt, New York,
Jan. 18-21— RMA Com mercial Loan
Documentation, Tampa.
Jan. 29-30— Loan Portfolio Management,
Feb. 1-6— ABA Community Bank CEO
Program, Don Cesar Beach Resort, St.
Petersburg, Fla.
Feb. 2 -3 — RMA Branch Bank Loan
Administration, Dallas.
Feb. 8-11 — BAI 12th Annual conference on
Bank Security, Fontainebleau, Miami
Beach, Fla.
Feb. 8-11—ABA Bank Investments Confer­
ence, Sheraton W ashington H otel,
Washington, D.C.
Feb. 8-20—ABA National Instalment Credit
School, University of Oklahoma, Nor­
man, Okl.
Feb. 11-13— BMA EFTS Marketing Confer­
ence, New Orleans, La.
Feb. 14-18—ABA National Trust Confer­
ence, Sheraton Waikiki, Honolulu, Hi.
Feb. 15-18— ABA Annual Community Bank
Executive Conference, Hyatt Regency,
Phoenix, Ari.
Feb. 18-20—ABA Corporate/Commercial
Marketing Conference, Fairmont Hotel.
Dallas, Tex.
Mar. 1-4—ABA Salary Administration
Workshop, Stouffers Denver Inn, Denver,
Mar. 3-5—ABA Risk & Insurance Manage­
ment in Banking Seminar, Sheraton, San
Diego, Cal.
Mar. 6 -8 — RMA Financial S tatem ent
Analysis, Denver.
Mar. 8-11— RMA Commercial Loan Docu­
mentation, Denver.
Mar. 8-11— ABA Bankers Education &
Training Forum, Galleria, Houston, Tex.
Mar. 15-18—ABA National Compliance
Conference, Fairmont Hotel, Dallas, Tex.
Mar. 15-18— BMA Community Bank CEO
Seminar, San Diego, Cal.
Mar. 22-24— ABA National Credit Confer­
ence, Chicago Marriott.
Mar. 22-25—ABA National Instalment
Credit Conference, Los Angeles Bonaventure.
Mar. 22-26— IBAA51 st Annual Convention,
Las Vegas Hilton, Las Vegas, Nev.
Mar. 26-27— RMA Loan Portfolio Manage­
ment, San Diego.
Mar. 29-Apr. 4— ABA Business of Banking
School, University of Notre Dame, South
Bend, Ind.
Mar. 29-Apr. 2— BAI Bank Auditors’
Conference, Loews Anatole, Dallas, Tex.
Apr. 12-17—ABA Management Seminar on
Retail Banking, Vero Beach, Fla.
Apr. 22-24— BAI 2nd Annual Accounting &
Banker, January, 1981
Federal Reserve Bank of St. Louis

Finance Conference, Chicago Marriott,
Apr. 27-28— RMA Branch Bank Loan
Administration, Columbus, Ohio.
May 18-20— BAI 4th Annual Bank Tax
Conference, Hyatt Regency/Crown Cen­
ter, Kansas City, Mo.
May 20-22— Association of Bank Holding
Com panies, 23rd Annual M eeting,
Waldorf Astoria, New York, N.Y.
June 8 -9 — RMA Branch Bank Loan
Administration, Boston.
July 25-Aug. 7— BAI School for Bank
Administration, University of Wisconsin,
Madison, Wise.
Aug. 9-14— Central States Conference,
Graduate School of Banking Post­
graduate Course, Univ. of Wise.-Madi­
son, Madison, Wise.
Aug. 9-22— Central States Conference,
Graduate School of Banking, Univ. of
Wise.-Madison, Madison, Wise.
Sept. 13-16— ABA National Personnel
Conference, Loews Anatole, Dallas, Tex.
Sept. 13-16— BMA 66th Annual Conven­
tion, Washington, D.C.
Sept. 27-30— National Association of Bank
Women’s annual convention, Hyatt Re­
gency, Chicago.
Oct. 3-7— ABA Annual Convention, San
Francisco, Cal.
Oct. 18-21— BMA Commercial Marketing
Conference, Boston, Mass.
Oct. 28-30— BMA Marketing in a Communi­
ty Bank Seminar, Dallas, Tex.
Nov. 8-11—ABA National Agricultural
Bankers Conference, Sheraton Washing­
ton, Washington, D.C.
Nov. 15-18— ABA National Correspondent
Banking Conference, Hyatt Regency
Kansas City, Kansas City, Mo.

State Conventions & Schools
Feb. 15-18— CBA Consumer Credit Confer­
ence, Broadmoor H otel, Colorado
Springs, Col.
Mar. 8-10— CBA Agricultural Credit Confer­
ence, Broadmoor H otel, Colorado
Springs, Col.
June3-6— CBA Annual Convention, Broad­
moor Hotel, Colorado Springs, Col.
Feb. 11-12— IBA Consumer Credit Confer­
ence, Hyatt Regency O’Hare, Rosemont,
Feb. 25-26— IBA Marketing & Public
Relations Conference, Holiday Inn-East,
Mar. 4-6—AMBI Consumer Credit Confer­
ence, Marriott Hotel, Chicago.
May 25-June 6— IBA Illinois Bankers
School, Southern Illinois Univ., Carbondale, III.
June 7-13— IBA A gricultural Lending
School, Illinois State University, Normal,
June 10-13— IBA Advanced Agricultural
Lending Clinic, Illinois State Univ.,
Normal, III.
June 14-16— IBA Annual Convention,
Chicago Marriott Hotel, Chicago.
June 21-27— IBA Commercial Lending
School, University of Illinois, Urbana, III.

Sept. 16-17 — IBA A gricultural Credit
Conference, Ramada Inn, Champaign#
Feb. 13-14— IBA Group 1 Meeting, Sioux
Feb. 15-16— IBA Group 11 Meeting^
July 16-18— Iowa Independent Bankers
10th Annual Convention, Lake Okoboji.
Feb. 11-12— MBA Senior Managemer^
Conference, Hyatt Regency, Minneapo­
June 15-16— MBA Annual Convention,
Radison South, Bloomington, Minn.
June 24-26— MBA Annual Convention, B i^
Sky of Montana, Big Sky, Mont.
Jan. 21-22— Instalment Credit Conference,
Holiday Inn, Kearney.
Feb. 4-5— NBA Personnel Conference#
Holiday Inn, Kearney.
Feb. 19-24— NBA Bank Presidents Confer­
ence, Orlando, Fla.
Mar. 19-20— NBA Agricultural Outlook
Conference, Holiday Inn, Kearney.
May 7-9— NBA Annual convention, L ir #
North Dakota:
Feb. 11-12— NDBA Bank Management
Conference, Holiday Inn, Bismarck, N.D.
Apr. 7-8— NDBA Consumer Credit Confers
ence, Ramada Inn, Jamestown, N.D. w
Apr. 21-24— NDBA Teller/Staff Confer­
ences, N.D.
May 17-19— NDBA 96th Annual Conven­
tion, Holiday Inn, Fargo, ND.
South Dakota:
May 11-12— SDBA Annual Convention,
Downtown Holiday Inn, Sioux Falls, S.D.
June 10-12—WBA Annual Convention.
Jackson Lake Lodge, Moran, Wyo.

BMA Schedules EFTS
Conference in New Orleans •
“EFTS: Competing with the New
Technology” will be the theme of the
Bank Marketing Association’s 1981
conference on electronic fundS|
transfer, it was announced by
Conference Chairman David Thibo­
deau, senior vice president of
marketing, Third National Bank,
Designed for bank marketers and
retail and corporate EFT produce
managers, the two-and-a-half-de
meeting will be held February 11-i
at the New Orleans Marriott Hotel. I t |
will focus on impending changes in
the banking industry and some of the
opportunities that technology offers
banks to deliver new and improved
products at a competitive price while j
maintaining profitability.


W hy we changed our name
W hat is this new philosophy?
“First o f all, it’s not new. It is only
new to this com pany. O u r first objec­
tive is to provide o u r custom ers with
su p e rio r service an d do o u r best to
satisfy th e ir needs. I f we do that, we
will enjoy a good rep u tatio n . G rowth,
an d ultim ately profits, will naturally
resu lt fro m this priority.

T he W estcap Corporation is the
new nam e for securities distributor
Hibbard, O ’C onnor and Weeks, Inc.
A nd not on ly the name is new:
Senior m anagem ent is new.
T he con trolling stockholders are
T he attitude is new.

“Also we have m uch m ore carefully
d efin e d o u r place in the m arket. We
are n o t going to try to be all things to
all people. We have n eith er the capital
n o r th e ability to do so.

T he point o f view is new .
L e a d in g th e new forces o f this
r e ju v e n a te d c o m p a n y is C lifto n
Iverson, J r ., P resident and CEO.
In S ep tem b er 1979, Mr. Iverson
to o k ch arg e o f a com pany beset with
problem s. In one year’s tim e, he and
his m an ag e m en t g ro u p m ade m any
c r i t i c a l , n e e d e d a n d d e s ir a b le
Now he answers some questions about
W hy the name change?
“W h en the com pany was acquired a
year ago an d the new m anagem ent
team p u t into place, the firm had
serio u s problem s. D u rin g the past
y e a r , w ith s tr o n g s u p p o r t fro m
m em b ers o f the investm ent com m un­
ity an d o u r stockholders, we have
solved o r corrected all o f the serious
p ro b lem s. W hat rem ains is mainly
h o u sekeeping.
“W e p o in te d th e com p an y in a
d iffe re n t direction. We changed the
basic business philosophy o f the firm.
By ch an g in g the nam e, we symbolize
th e changes th a t have taken place and
o u r b rea k with the business philoso­
phy o f th e p rio r m anagem ent.
“The name change also makes clear that
Messrs. Hibbard, O ’Connor and Weeks
have no current connection with the
firm. ”
W hy now and not a year ago?
“O u rs is a business o f trust. To
conceal, o r even attem p t to conceal, a
p ro b lem ed past w ithout first correct­

“We are, specifically, a regional distri­
butor o f certain types o f fixed income
securities to small and medium sized
financial institutions. We intend to
excel in that and only that. ”
C lifton Iverson, Jr., President and
CEO o f T he W estcap Corporation:
“We operate a different type o f
b u sin ess than H. O. W. did !”

in g th e ills o f th a t p ast, violates
principles we consider param ount.
“We chose, instead, to achieve our own
reputation— to prove again to the business
community and to our customers, that this
new company had the ability to survive and
thrive. I think we have achieved this. ”
What were the problem s you refer
“T h e m ajor problem was financial.
T h e old com pany h ad engaged in
speculative transactions for its own
a c c o u n t a n d lost a g re a t d eal o f
m o n ey . T h e y d e a lt extensively in
fo rw ard GN M A an d FNMAC securi­
ties w ith ex ten d e d settlem ent dates.
In o r d e r to close o u t these positions, it
was necessary fo r us to borrow ad d i­
tional funds. T h e n to repay them ,
w hich we did.
“Also the old company never clearly
decided what they really wanted to be.
They were part investor, part specula­
tor, part dealer and part broker. They
fragmented their efforts and wound up
in difficult straits. ”

Is it working?
“R em arkably well. F or exam ple,
last year we o p en e d 547 new accounts.
Also, we w ere w orking with m ore
m ajo r security dealers in Septem ber
1980 th a n we w ere in S ep te m b er
1979. T h is d em o n strate s th e tru st
w e ’ve e a r n e d in th e f i n a n c i a l
com m unity.
“A nd we have made money, doing it our
way. ”
“ O u r c a p ita l o f m o re th a n $3
Million, as n oted in o u r 1980 annual
re p o rt, was a larg er capital base than
th e firm ever had. A nd we earn ed
m o re th a n $600,000 th at first difficult
y ear.”
W hat’s ahead?
“M ore o f th e same. T h e same stead­
fast d edication o u r m anagem ent has
show n this year. W estcap operates a
d i f f e r e n t ty p e o f b u sin e ss th a n
H . O. W. did. Now we have to let every­
body know it!”

H .O .s?W
is dead!
L o n g live

W estcap!
The Westcap Corporation
1300 M ain Street!Houston, Texas 77002 / 713.631-1111
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981




f W



Bank Promotions

changes have been announced by
the following banks:
BankAmerica Corporation and
Bank of America NT&SA, San
Francisco: Directors have announced
the new management team that will
take office at the corporation’s annual
stockholders meeting April 21, 1981.

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architecture of your building and will
provide a color drawing and quote at no
cost. Call or write for details today.



Box 299 Brookings, SD 57006
Phone 605-692-6145

Northwestern Benker, Jenuary, 1981
Federal Reserve Bank of St. Louis


This action resulted from the
decision by president and chief
executive officer A. W. Clausen, 57,
to accept election to the presidency of
the World Bank effective July 1,
Samuel H. Armacost, 41, will
succeed Mr. Clausen as president and
chief executive officer of the holding
company and the bank. He has been
executive vice president and cashier
of Bofa and treasurer of the holding
company. He was also elected a vice
chairman and director of BankAmer­
ica Corporation, effective immediate­
Chauncey J. M edberry, 63,
chairm an of both the holding
company and the bank, was
appointed to succeed Mr. Clausen as
chairman of the executive committee
of both boards. He will continue to
give guidance to Bofa’s strategic
planning effort and oversee its
banking and community activities in
southern California where he main­
tains his office.
Leland S. Prussia, 51, vice

chairman and executive officer of t h e f
bank’s World Banking Division, was
elected to succeed Mr. Medberry on
April 21 as chairman of the holding
company and bank.
Mr. Clausen has headed the bank#
and holding company since January
1.1970. He has been with the bank 31
Mr. Clausen has headed the bank
and holding company since January0
1.1970. He has been with the bank 31
Mr. Armacost joined the bank in
1961, left to complete his MBA at
Stanford University and returned in #
1964. In 1971 he left for one year to
serve in the President’s Executive
Interchange Program with the Office
of Monetary Affairs of the U.S. State
Department. He was appointed in #
1977 as executive vice president and
head of the bank’s Europe, Middle
East and Africa Division, with
headquarters in London, the post he
held until being named cashier in #
May, 1979.
Mr. Medberry was named chair­
man in 1971 and in that office also
headed the world Banking Division
four years. A graduate of UCLA, h e#
joined the bank in 1939.
Mr. Prussia joined the bank in 1956
after receiving his master’s degree in
economics. He was cashier from 1974
to May, 1979, when he was appointed#
executive officer of the World
Banking Division. He was elected a
vice chairman of the bank and
holding company boards in 1978.
Commerce Bank of Kansas City:
The following promotions have been
announced for staff personnel:
James P. Kern, manager of the
money market division, and Martin
E. Stanek, manager of the central
securities department, both were
named assistant vice presidents.
Dennis C. Riffle and Janet M ..




Too often,
commercialoverline requests
get put in their place.

They get filed away. Forgotten. Politely ignored.
The correspondent banker, who was all ears when
you wanted to talk non-credit services, suddenly
isn’t listening.
At Continental Bank, we’ll listen to anything.
That’s right. Anything. Commercial customers mean
a lot to our correspondents. And our correspondents
mean a lot to us.
So, we set out to accommodate. The loan might
not be as well-documented as many banks would
like. The risk might be higher. The profit, lower. But
if you’re ready to go to the legal limit, you’ve got

every right to expect us to hear you out.
And answer you quickly. At Continental, you get
the decisiveness you expect. And deserve. Your credit
request isn’t bogged down in redtape. Or held up in
committee. It goes directly to your account manager
—the officer who can authorize most loans. So, you
get a decision, fast, from the person who made it.
Call John Tingleff at (312) 828-2191. Tell him
you want to discuss commercial overlines. Then,
start talking. You can be sure we’re listening. It’s
what you expect from a top correspondent bank.
At Continental Bank, it’s reality.

Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693
Federal Reserve Bank of St. Louis

Northwestern Banker. January, 1981


Fink, both named correspondent
banking officer. Mr. Riffle is
responsible for correspondent banks
in Arkansas, Iowa, Nebraska and the
northern Missouri region. He joined
Commerce in 1972 at Kahoka, later
serving with the holding company’s
CBI insurance company. Mr. Riffle
attended Northeast Missouri State
University in Kirksville and the Gem
City Business College in Quincy, 111.
Ms. Fink is responsible for
Commerce correspondent banks in
metropolitan Kansas City area. She
joined the bank in 1972 and entered
the retail banking department in
1977. She attended N orthw est
Missouri State University in Mary­
ville and has an associate degree from
Johnson County Community College
in Overland Park, Kans. Currently,
she is pursuing her BS degree in
business from the University of
Missouri at Kansas City.
James E. Gorman has joined
Commerce Bank as credit and
collection department manager and
consumer banking officer. Previous­
ly he was with General Telephone
Company and for seven years was the
First National Bank of Chicago.
First National Bank of Chicago:
Douglas E. Van Scoy, a partner with
P rice W aterhouse & Co., has
been named gen­
eral auditor and a
senior vice presi­
dent of F irst
Chicago Corpor­
ation. He will be
responsible for
planning and di­
recting all opera­
tions of the cor- D E- VAN SC0Y
porations audit division. Mr. Van
Scoy, 39, joined Price Waterhouse in
1964 when he became a certified
public accountant. He received his
BA and MBA degrees from the
University of Michigan.
First National Bank of Kansas
City: Charles W. Battey has been
elected a director of the bank. He is
executive vice president of finance
and administration at United Tele­
communications, Inc., in Kansas
City. Mr. Battey was a banker for
nine years in Chicago and Kansas
City prior to joining U nited
Telecommunications in 1973 as senior
vice president. He was named to his
current management post in 1977.
Mr. Battey is a native of Lincoln,
Nebr., where his father was the
Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

widely known president of Continen­ been elected chairman of the board,
tal National Bank and later chairman effective January 1, 1981. Henry K .#
of First National Lincoln.
Gardner, 57, continues as president
and chief executive officer.
First National Bank of Kansas
Mr. Schroeder, president of Miami
City: George C. Dudley, 62, senior Corporation and a director of the
vice president
bank, succeeds Myron Ratcliffe, who#
and consultant
held the post of chairman for the past
retired Decem­
24 years. Mr. Ratcliffe was named
ber 31 to con­
honorary chairman.
clude more than
Mr. Schroeder, who received his
45 years of ser­
MBA degree from D a rtm o u th #
vice with the
College in 1958, joined Miami
F irst N ational.
Corporation in 1960. He was elected
He was the
treasurer and a director in 1968 and
bank’s senior em­
became president of the company in
ploye in years of
1978. He has been a director o f#
service at the
National Boulevard Bank since 1971.
time of his retirement.
Mr. Dudley joined the bank
September 4,1935 as a messenger. In
following years he attended Kansas
City Junior College and the
University of Missouri at Kansas
City. He took a number of A.I.B.
classes and was greatly involved with
A.I.B. activities during his career. In
more recent years, Mr. Dudley was
graduated from the Graduate School C.E. SCHROEDER
of Banking at the University of
Mr. Gardner also has announced
Wisconsin in Madison.
He had a leave of absence from the promotion of David J. Faron to #
1941 to 1946 for five years of service vice president. A graduate of
in World War II, during which time Northwestern University with a BS
he was a Major with the Eighth Air degree, Mr. Faron began his career
Force in England. His principal with National Boulevard in Decem­
assignment there was as Adjutant ber, 1973, as assistant vice president#
General for the Second Wing, which and has been associated with the
was made up of 22 B-24 bomber commercial department since joining
the bank. Prior to that he had nine
of banking experience as a
Mr. Dudley was promoted to
assistant cashier in 1948 following his commercial loan officer at two other •
return from military service. After Chicago banks.
advancements to assistant vice
Northern Trust Corporation, Chi­
president and then vice president in cago: E. Norman Staub, chairman
1950 and 1957, he was elected senior and chief execu­
vice president in 1970. He worked in tive officer of the
the correspondent bank division for a holding company
number of years where he was and its principal
well-known to bankers throughout subsidiary, The
Nebraska and Iowa. He headed the Northern Trust
department until last February, Company, an­
when he was named consultant and nounced recently
took on special assignments for the he will retire next
bank before his retirement.
March at age 65
First National Bank in St. Louis: under the corporE N- STAUB
Officials here have announced the a tio n ’s re tire ment
election of Vernon P. Schmidt as vice
Directors of the holding company
president and Mary W. Barron and
they plan to name Philip W . K.
Kermit R. Workman as assistant vice
Jr., 52, currently president of #
presidents. New officers are Deborah
to succeed Mr.
L. Korfhage, operations, and John S.
an and chief
Rouse, commercial banking.
executive officer. Charles H. Barrow,
National Boulevard Bank, Chi­ 50, now senior executive vice
cago: Charles E. Schroeder, 45, has president of the holding company and #


When you’re the
num ber one travelers cheque
in the business,
you don’t stop making


T a t’s why American

Express Travelers Cheques
is investing $35 million in
a major new communica'
tions and operations center in
Salt Lake City, Utah.
This facility will take about
two years to build and represents
the most important financial
and technical commitment in
our history.

In the words of Travelers
Cheque Division Ffesident
Michael E. Lively, the new cem
ter will be “the most advanced
communications and operations
facility in the industry. The result
will be improved profitability to
financial institutions due to
reduced paperwork and superior
communications. At the same
time, it will enable us to provide

increased responsiveness to a
wide variety of Travelers Cheque
customer needs.”
We at American Express
have been at the forefront of
every major innovation in the
travelers cheque business, leading
the way in offering improved
travelers cheque services to you
and your customers. This new
center continues that tradition.

Am erican Express
Travelers Cheques
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981

appointed to the 14-member Future­
banking Advisory Board of C orres#
pondent Resource, Inc., New York.
The firm is a subsidiary of Citibank of
New York, serving its correspondent
relationships nationwide. Mr. Farrar
is the upper midwest member of the#
banker board.


j.K . BUCK

bank, will be named president and
second ranking officer of both
corporations. David W. Fox, 49,
executive vice president and head of
Northern’s banking department, will
be named vice chairman and is
proposed as a director of the holding
company and the bank.
All changes will become effective at
the time of Northern’s annual
meeting March 17.
In addition, directors of the
holding company appointed Edward
Byron Smith as honorary chairman,
effective January 1, 1981. Although
retiring as an officer of the
corporation and the bank, he will
continue as a director of both. He
served the bank more than 48 years
and preceded Mr. Staub as chairman
and chief executive officer from 1963
to 1978.
The Northern banking department
has now been separated into the
commercial banking department to
be headed by Stephen B. White,
senior vice president, and the
personal banking department to be
headed by Jay K. Buck, senior vice
Within the commercial banking
department, Perry R. Pero, senior
vice president, has been designated
deputy department head and senior
credit officer. Harold E. Hindsley,
senior vice president, has been
designated administrative officer.
The new commercial banking
departm ent will incorporate a
number of structural changes to
concentrate more effectively on
development of domestic banking
markets. These include a special
Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis



industries group, with emphasis on
natural resources, agriculture and
commodities, and commercial real
estate business. In addition, the
metropolitan group has been expan­
ded to reflect the importance of the
Chicago market and its potential for
further growth.
United Missouri Bank of Kansas
City: R. Crosby Kemper III has been
elected an advisory director. He has
been with the bank since 1977 and is
vice president in commercial lending
and business development.
Burton E. Haskins III, Robert T.
Browne and Doris Y. Hardesty have
been elected vice presidents.
Mr. Haskins joined the bank in
1978 after receiving his master’s
degree in business administration
from the University of Wyoming.
Ms. Hardesty joined the bank in
All three vice presidents are in the
commercial bank operations division.
Tim P. Connor has been named
marketing officer of United Missouri
B ancshares, Inc., the holding
company. He will handle advertising
and marketing for 20 of the affiliate
banks located across the state. He
was formerly an editor with an area
publishing company and joined the
bank in 1979.
Named to Correspondent
Bank Advisory Board
Frank L. F arrar, who has
ownership in a number of banks in
South Dakota, Nebraska and Iowa
and surrounding states, has been

American National, Chicago
Will Truncate NOW Checks #
American National Bank and
Trust Company of Chicago is
introducing a NOW account plan
which features a check safekeeping
option. American National is the firsts
major bank in Chicago to offer
The plan is tied in with one of two
optional NOW accounts, which are
interest-bearing checking accounts#
that became available to bank
customers on January 1.
The bank is offering two kinds of
NOW accounts to its customers.
“American NOW” provides checking#
with no service charge and 5 V*
percent simple interest on the
available balance, with a required
minimum balance of $2,000 or an
average balance of $4,000. “Check/#
Save” requires only a $1,000
minimum balance or $3,000 monthly
average to qualify for no service
charges. Holders of the Check/Save
account will receive only a monthly#
statement of checks paid, although
they can have photocopies of two
checks a month for free. The bank will
store photocopies of the checks for
three years.
Opens Peking Office
First National Bank of Chicago has
opened a representative office in #
Peking, China. Wallace Anker,
senior vice president and former
deputy head of the bank’s worldwide
banking department, is the Peking
Ford Executive Renamed
Chicago Fed Chairman
John Sagan, vice president-trea #
surer of the Ford Motor Company,
will continue as chairman of the board
of directors of the Federal Reserve
Bank of Chicago in 1981, and Stanton
R. Cook, president, Tribune Com #
pany, has been reappointed deputy
chairman. Mr. Sagan has also been
named to a second three-year term as
a Chicago Fed director beginning
January 1.


*Are you working harder
than your portfolio?




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~mi ' 197« 1979

Major tests lie ahead — for the Fed, for money
markets and for the economy. New offerings are
flooding the markets and interest rates continue to
How do you keep pace with an uncertain
market? For many banks, the answer is First Bank
Saint Paul. Our Investment Services Group has 36
full-time professionals ready to help you with the
most sophisticated investment tools available.
Our “ Blue List Bond Ticker” makes available by
computer new listings and price changes as they
occur. And the latest money market news is just a
phone call away on our Money Market Hotline.

A Full Service Bank
Federal Reserve Bank of St. Louis

We also have the largest inventory of municipal
bonds in this region, plus a wide variety of
government securities, repurchase agreements,
commercial paper and other money market
investments so we can tailor a program to meet your
specific objectives.
We can execute your transactions rapidly,
provide safe-keeping and give you a monthly
computer report on your portfolio’s performance.
Meet Bruce W. Hebei
our Assistant Vice
President. Bruce is
responsible for North
and South Dakota.
Give him a call at
(612) 291-5660.
He’ll be happy to
answer any guestions
you may have.

First Bank Saint Paul
Member First Bank System

Investment Services Group
The First National Bank of Saint Paul
332 Minnesota Street
Saint Paul, Minnesota55101 (612) 291-5659

Member FDIC
Northwestern Banker, January, 1981



get T.I.P.S.*


EARLY 500 correspondent bank officers took part
in the 1980 National Correspondent Banking'
Conference at the Hyatt Regency Hotel in Atlanta
recently. Chairman of the ABA Correspondent Banking
Division executive committee this past year was George
F. Milligan, executive vice president of Iowa-Des
Moines National Bank, Des Moines. He was assisted by #j
Conference Chairman John A. Edmiston, senior vice
president, Denver National Bank, Denver. Thomas P.
Rideout, president of Savannah Bank and Trust
Company, Savannah, Ga., succeeds Mr. Milligan as
1980-81 executive committee chairman.
Executive committee members for the coming year
from the upper midwest include E.L. Burch, senior vice

Federal Reserve Bank of St. Louis

STARTING at upper left photo and reading counter clockwise,
those pictured (left to right) are: 1. Lew Jenkins, pres.-elect of
ABA and vicechmn., Manufacturers Hanover Trust Co., New York
(and formerchmn. of ABA Correspondent Banking Division); Lee
Gunderson, pres, of ABA and pres. Bank of Osceola, Wis., and
John Clark, ABA dir., Correspondent Banking Division, listening
intently to speaker.2. John Edmiston, sr. v.p., Denver Natl.,
Denver, and John Clark chat with keynote speaker Tom
Storrs, chmn., NCNB Corp and North Carolina Natl., Charlotte.
3. Bob Dressel, v.p., United Bank of Denver; discussion leader
Wayne Hansen, sr. v.p., Chase Manhattan, New York, and Sam
Northrop, Jr., sr. v.p., Wachovia B&T, Winston Salem, N.C.,
listen to comments on Pricing of Fed Services. 4. Jim
Johnson, v.p., Bank of New Orleans & Tr. Co., New Orleans,
absorbs comments by Robert E. Knight, pres., Alliance (Nebr.)
Natl., discussion leader for Account Analysis Trends. 5. Mr.
Knight’s table was the most crowded one as attested by this
group which included: Standing—Andy Sawyer, Jr., v.p.,
Narine Natl. Exchange, Milwaukee; Frank Abersfeller, v.p.,
Rainier Natl., Seattle, and Bill Rickert, sr. v.p., Natl. Bank of
Waterloo, la. Seated— Billy Howard, sr. v.p., 1st Natl., Jackson,

president, United Missouri Bank of Kansas City; Don
#H. Echtermeyer, senior vice president, Central Bank of
Denver; John E. Mangold, senior vice president,
Merchants National Bank, Cedar Rapids, la.; Donald
G. Pederson, senior vice president, Northwestern
N ational Bank, M inneapolis, and Hollis W.
•Rademacher, senior vice president, Continental Bank,
The concentrated two-day conference starts at 7:00
a.m. each morning and features general session speakers
and two dozen workshops and table discussions. The
•1981 conference is scheduled for November 15-17 at the
Hyatt Regency in Kansas City.

# Miss., and John Hendricks, sr. v.p., Union Bank, Los Angeles. 6.
Jerry Swords, pres., Swords Associates, Inc., Kansas City, M o.,
and Brad Johnson, v.p., Shearson Loeb Rhoades, Inc., New
York, who conducted the workshop on “What Are Community
Bank Stocks Worth?” 7. Doug Schmidt (at right of sign), corr. bk.
off., 1st Natl., Sioux City, la., and John Thomson, a.v.p.,North# western Natl., Minneapolis, listen to Bill Dwyer, exec. v.p. of
Profit Technologies Corp., Chicago, discuss Asset/Liability Mix.
8. Allen Wolkey, v.p., Fed of Chicago, offers a comment on
Pricing of Federal Reserve Services to Wilbur Baack, sr. v.p.,
Natl. Bank of Commerce, Lincoln, Nebr., and discussion leader
George Milligan, exec, v.p., lowa-Des Moines Natl., Des
# Moines. 9. Bob Anderson exec, v.p., 1st Natl., Minneapolis,
discussion leader for E.D.P. Services— Dilemma for Respon­
dents, hears views of Bruce Fairbanks, v.p., Union B&T, Grand
Rapids, Mich., and John Norman, v.p., Connecticut B&T,
Hartford. 10. Comments on Bank Stock Financing hold attention
of Colin Johnston, v.p., 1st Natl., Chicago; discussion leader
# Don Echtermeyer, sr. v.p., Central Bank of Denver, Colo., and
Steve Sheridan, v.p., Denver Natl., Denver.
Federal Reserve Bank of St. Louis


changes have been announced by
the following firms:
American Express Company, New
York: A Financial In stitu tio n s
Services Division has been formed,
comprising three of the company’s
major providers of services to
financial institutions: First Data
Resources, Omaha; Payment Sys­
tems, Inc., Atlanta, and American
Express Money Order unit, Arapa­
hoe County, Colo.
FDR, acquired by American
Express earlier this year, is the
nation’s largest independent credit
card processor. PSI is a leading
supplier of multi-sponsor research in
the field of payment systems and
electronic funds transfer. The Money
Order unit is one of the largest
providers of money orders sold
through financial institutions and
retail stores.
P.E. Esping, a chairman of FDR,
will head the new division and report

For Installm ent Loans

• Autom ated
• Manual


to Louis V. Gerstner, Jr., executive
vice president of American Express.
Mr. Gerstner said the division
currently serves several thousand
financial in stitu tio n s and other
service capabilities will be added.
While PSI will continue to operate as
an independent unit, the Money
Order unit, Mr. Gerstner said, should
“ gain advantages from FD R ’s
demonstrated capability in transac­
tion-oriented businesses and expand
its business beyond its current base. ”
Aetna Business Credit, Inc., East
Hartford, Conn.: The sale of ABCI to
Aetna Life & Casualty of Hartford
was completed last m onth in
Hartford after previous approval by
the Federal Reserve Board of
Governors. Purchase price was listed
as $165 million.
The newly-acquired firm becomes
the fifth operating division of
BarclaysAmericanCorporation which
handles consumer lending, commer­
cial financing, leasing and the sale
and underwriting of credit-related
insurance. Headquartered in Char­
lotte, N.C., BarclaysAmericanCor­
poration is a subsidiary of Barclays
Bank International Limited.
ABCI President and Chief Execu­
tive Officer Richard S. Cornwall said
the 65-year old firm will continue to
be headquartered in East Hartford.

North Central Life Insurance
Company, St. Paul, Minn.: Walte^
A. Griffin, CLU, senior vice
president and sales director, has
announced a series of promotions and
organizational changes designed to
strengthen the internal structure 0%
the sales department.
Roger Pulkrabek, Richard A.
Nelson and Denny Zea, all former
regional vice pesidents, have been
named vice president and national®
sales manager for their divisions.
Mr. Pulkrabek will head the
financial institutions division, with
responsibility for nation-wide mar­
keting of credit insurance products#
through banks, savings and loans,
loan companies and credit unions. He
joined the company in 1966 and has
been in sales since then.
Mr. Nelson is manager of the newly®
formed dealership division that will
have national responsibility for all
company insurance sales through
auto, truck, RV and marine
dealerships, retail credit and non-fi-l
nancial institution lease programs.
He joined North Central in 1976 as a
dealership specialist.
Mr. Zea, who headed ordinary
insurance sales in the north central!
area, now heads that division
nationally. He has been with North
Central since 1973 and four years
prior to that with Monarch Life in
Sioux Falls.
North Central Life is a national
leader in marketing insurance to
customers of financial institutions. It
is licensed in 46 states. It has nearly (
$2.2 billion insurance in force.

BarclaysAmerican Business Credit Conclave


call or write:

1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
(612) 333-2261

Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

HOLIDAY PARTIES included a group from the Minneapolis office of BarclaysAmerican
Business Credit (formerly Aetna Business Credit). Shown from left are: Al Olson, host,
James T. Verefurth, e.v.p. from Hartford office; Willis F. Rich, Jr., e.v.p., Northwestern
Nat’l. Bk., Minneapolis, and R. Lynn Jones, host.


The Mosler
Service people
wherever you are.
It’s a fact that you’ll find Mosler service people in
places you won’t find anyone else. You’ll also find that
Mosler people understand that getting to you “as soon
as we can”just isn’t soon enough.
That’s why last year alone, Mosler service people
drove more than 20,000,000 miles in their custonv
equipped vans to keep all kinds of security and
transaction products in operation. Twenty Tour hours
a day. Seven days a week. Even in Alaska.
Another fact. Mosler service people spend up to
20% of their careers staying up'to-date with current
technology. So they come to you trained to do the
job right. Usually the first time. And always at
prices you can live with.

Security products
wherever they’re needed.
Whether custonvguarding the original
Declaration of Independence in Washington, DC,
safeguarding the gold in Ft. Knox or protecting
valuables in a safe deposit box in Topeka, Mosler stands
for excellence
everywhere. All
because the quality of
Mosler products
stems from the
quality of its people-an
advantage our customers can’t get
from any other security company.
Put The Mosler Advantage to work for you. Start with
a copy of our “Scope of Mosler” and “Service” brochures by writing
Mosler, Dept. S-80, 1561 Grand Blvd., Hamilton, Ohio.

, Quality People. Quality Products.
Federal Reserve Bank of St. Louis


American-Standard Company

H am ilton, O hio 45012

Northwestern Banker. Janaury, 1981


Continental Holds Training Workshop

A ONE-DAY training forum was held recently by Continental Bank of Chicago at
the bank’s headquarters for persons responsible for training in their banks.
Banks are becoming more involved in training and are looking for assistance in
developing their training areas. “These sessions were specifically designed to
offer training guidelines for banks that do not have a formalized training
division,” said Jeanne Czarnecki, banking officer and manager of educational
services at Continental Bank. Workshop topics included “Basic Training
Techniques,” “Group Dynamics,” “Needs Assessment” and “How to Structure
Training in Your Bank.” Additional workshops are planned for next year.
The workshop leaders were, from left, Marsha Adamczyk, customer relations
trainer, Continental Bank; Geoffrey M. Bellman, president of GMB Associates, a
consulting firm specializing in human resource planning; Ruth H. Carroll,
personal banking training manager, Continental Bank; Lynn Z. McCreery,
assistant vice president and personnel development officer, Glenview State
Bank; Regina L. Logan, educational services administrator, Education
Foundation of the National Associations of Bank Women, and Jeanne Czarnecki.

First Chicago Will License First Cash
System to Financial Institutions
IRST Chicago will begin licen­
sing FirstCash, the Bank’s
balancing reporting system to
financial in stitu tio n s, announced
Christopher Skaar, vice president in
the bank’s cash management divi­
sion. FirstCash is a family of
computerized information exchange
services, which consolidates data
from several banks and generates
printed reports for corporate treasury
staffs on their desktop terminals. The
new licensing program enables
financial institutions to offer the
service under their own identity to
their corporate market.
Mr. Skaar said, “First Chicago has
had tremendous success marketing
FirstCash within its own customer
base, which inspired us to adapt the
product for licensing. Our program
supplies participating financial insti­
tutions the use of the software
through an arrangem ent with
General Electric Information Ser­
vices Company. We also provide
agent banks interned training to
Northwestern Benker, January, 1981
Federal Reserve Bank of St. Louis

interface their or their bank’s
systems with GEISCO’s, as well as
basic operations training for their
employes. We also conduct sessions
to teach their personnel how to sell
the product. First Chicago includes a
product manual and a complete
merchandising kit.’’
The product will be offered to
financial institutions in three phases.
The first phase will offer Balance and
A nalysis Modules th a t contain
programs for:
1 . Balance R eporting—provides
consolidated printed reports of the
corporation’s cash position in all
of its banks including ledger and
collected balances, float figures,
total debits and credits.
2. Detail Reporting—a descriptive
listing of previous-day transac­
tions affecting the corporation’s
3. Balance History—month-to-date
and previous month’s balance
activity at a glance including
month-to-date averages for ledger

and collected balances, total
debits and credits.
4. Target Reporting—locates cash
surplus or deficits in the corpora­
tion’s banking network.
The first phase is currently being
used on a test basis with m arket#
introduction scheduled for th is
Phase II, targeted for distribution
in April, will offer a Money Transfer
Module and Phase III, planned for#
m id-year, will feature a Cash
Concentration Module.
Doane and Victorio
Services To Merge
The shareholders of Doane Agri­
cultural Service, headquartered in
Saint Louis, have approved a merger
with Victorio Agricultural Services, a
Missouri subsidiary of The Victorio
Company of Phoenix.
Doane Agricultural Service is a
61-year old, highly-regarded apprai­
sal, real estate, market research,
publishing, consulting, and farm
management company, with about
300 employes concentrated in the
The Victorio Company is a
privately-held company with nearly
700 employes in its operating
subsidiaries concentrated in the
western United States.
Doane management and their
board of directors will continue. Mr.
J.W . Hackam ack, president of
Doane, will join the Victorio board,
which includes Dr. Earl L. Butz^
former U.S. Secretary of Agriculture,
and Peter G. Wray, chairman and
major stockholder of The Victorio
Company. Mr. Wray will join the
board of Doane, as well as Richard L.<
McElheny, senior vice president of
The Victorio Company, previously
president of Farmhand, Inc. of
Hopkins, Minn.

Two Men Re-elected To
Kansas City Fed Board
Wayne D. Angell, president of th e#
Council Grove N ational Bank,
Council Grove, Kan., and James G.
Harlow, Jr., president and chief
executive officer, Oklahoma Gas and
Electric Co., Oklahoma City, have#
been re-elected to the nine-member
board of the Federal Reserve Bank of
Kansas City.
The two men will serve three-year
terms beginning Jan. 1, 1981.



These are uncertain
times. W e have been
in a serious recession,
but w e’re not sure
how deep it has been
or how fast we are
climbing out. Money
rates reached
unheard of heights,
but we don’t know
how much they will
drop or if they will drop
back to normal. Some of our
large, basic industries are in
trouble. Our economic stability is
dependent on a steady flow of
petroleum im ports which may or
may not prove dependable.
All of this uncertainty makes
business lending very difficult.

However, SLT can
eliminate some of the
uncertainty th a t lenders
face by guaranteeing
your custom ers’ inventory
as pledged collateral.
For over 5 0 years, we
have worked with
banks and commercial
lenders to collateralize
loans and make lending
safer and more profitable.
Give us a call; we can eliminate
uncertainty from your
loan portfolio.

P 0. Bo* 242, St Louis. Mo, 63166 • 314/241 9750 • Offices in Maior Cities
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981


Money Or

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Over 3000 financial institutions have
switched to Travelers Express Money
Orders. Their reasons are many:
Backroom economies
Simplified reporting
Fast to issue
Bigger balances
Higher profits
And many more
And, many are now switching to Travelers
Express OFFICIAL CHECKS, in place of
their own Cashiers' Checks, to get cash
monthly income or bigger balances.
Whether your bank is large or small, you
can benefit. Why not check into both
services, call us toll-free at 800-328-5678.

l/A rrie o c c ri

t^t r

Oltlt, 44

Travelers Express»
^ ^ a W K o r.






5075 Wayzata Blvd., Minneapolis, Minn. 55416


d ef
«'«•*♦'’ '.’is.


s t S e c u rity

First northwestern

national Bank

GfâixS Rapids. Minn«so?»
Federal Reserve Bank of St. Louis


Money Order

132 3260007

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•Correspondent banking
in the

A N o r t h w e st e r n B a n k er S urvey
Check. Collection

m s


Correspondent bankers see an expanding role
V ^for their services with community banks in the
decade ahead, in view of the recently announced Federal
Reserve Board pricing schedule for Fed services.
.Furthermore, most of the bankers responding to a
special N orthw estern B ank er survey on this subject
report they plan to market their services aggressively in
coming months so as to position themselves and the
correspondent system as the real partner of community
|banks. City correspondent bankers responding to this
exclusive survey feel they can outperform the Fed on a
competitive basis, and with more personal relationships
that have existed for decades among correspondent
I In addition to requesting the particiapnts’ answers
about the Fed pricing question, the survey also asked
opinions about fees versus balances, the offering of EDP
services by correspondent banks, the most popular
services used by community banks, and the role of
^associations in providing specialized services.
Comments were received by the following bankers:
Federal Reserve Bank of St. Louis






Senior Vice President
The Northern Trust Company
Chicago, 111.

EXPECT that Fed pricing will encourage many
W Erespondents
to re-evaluate their correspondent
relationships. While there is considerable uncertainty as
to the outcome of this evaluation process, we expect that
correspondent banks will become more important, for
instance, in check collection than in the past. Although
services provided by the Federal Reserve will generally
be less expensive than those offered by correspondents,
the latter group will continue to deliver a “value-added”
that justifies using a correspondent. For example, even
Northwestern Banker, January, 1981


“We feel that an independent data processor can provide
EDP services on an adequate, more cost effective basis.”
if Federal Reserve fees for check collection are less than a
correspondent’s, a major check collection bank will offer
availability of funds superior to that of the Federal
Reserve. We remain committed to our correespondent
relationships and will continue aggressively to solicit
this business and provide innovative services.
Recent research conducted by us confirms that a vast
majority of our respondents prefer paying for services in
the form of compensating balances. The advent of the
Federal Reserve System charging on a fee basis to many
banks will test this concept, but we expect that most
banks won't want to pay in fees.
We do not offer and do not plan to offer EDP services
to our respondents. We feel that an independent data
processor can provide such services on an adequate and
more cost-effective basis.
The most popular services used by our respondent
banks are:
a. Check collection services
b. Wire transfer services
c. Bond, money market, and Fed Funds trading
d. Security safekeeping services
e. Overloan and loan participations
f. Consulting services
This is a list in terms of usage. It is not necessarily a
reflection of the relative importance of these services to
our respondents.
We believe that banker associations can make a
significant contribution through educational programs.
As our banking environment changes more rapidly,
education will take on an even greater importance. This
increases the necessity of these programs being kept
current by periodic updating and the introduction of new
Banker associations should also be expanding their
lobbying activities. With the increasing amount of
industry regulation through legislation and regulatory
bodies, it is important that the banking community
present a united voice that is heard at the state and
federal level.

Vice President
American National Bank and
Trust Company
Saint Paul, Minn.
ED pricing will make for a substantial increase in
cost for providing overall operational services. Our
bank will remain strong in providing operational
services and we will be aggressive in providing alternate
ways of providing the services.
I believe correspondent relationships will become
stronger due to the system becoming more complex and
the need by respondents for more consulting services. I
see alternatives as a way to by-pass the Fed such as
clearing houses and increasing use of direct sends as the
most urgent new priority.
for FRASERBanker, January, 1981
Federal Reserve Bank of St. Louis

Balances are still used for more than fees. This method
will likely continue as long as the bank has excess#
balances. In the long run, fees will replace balances.
We will continue to offer EDP services to
respondents. The correspondent EDP supplier can more
efficiently keep both hardware and software current with
the market needs and regulatory changes than#
individual banks operating by themselves.
The most popular services used by respondents are:
1) Cash Letters
1) Investment Services
3) Credit - bank stock & over lines
4) EDP
5) Financial Management Consulting
Banker associations should address issues common to
all banks and aggressively try to enact legislation
beneficial to all banks. For example - usury laws, taxes^
on interest earned, variable rate mortgages.

Vice President
United States National Bank
Omaha, Nebr.

HE BANKING industry is facing many new
challenges in 1981. Additional competition, both
financial and non-financial, and changes in regulations'
and deregulation, will produce many new products in the
market arena as well as many new innovative marketing
techniques. This will place continued pressure on growth
and profits.
The Deregulation and Monetary Control Act creates'
changes and new opportunities in correspondent
banking. With the Federal Reserve’s new reserve
requirements and pricing schedule, we will see
correspondent banks become more aggressive and
competitive in providing better availability of funds. As®
we see the balances managed better by respondent
banks, we will see products and services provided on a
fee basis. The correspondent network will be called upon
to provide more management and training expertise in
all areas. We must provide total financial management*
services through quality products and quality services
at competitive prices.
As our industry continues to change, one of the most
important services we provide is data processing.
Respondent banks today must look to someone who can
provide quality EDP service as well as someone who can
provide these services for an ever changing environment
in the future.
There will still be a need for the traditional services(
such as overlines, safekeeping, investments, etc., which
must provide the necessary needs for the respondent
banks and their communities.
The future changes will provide a stronger, more
competitive, knowledgeable and responsive correspon-(
dent system than ever before.



f t

Jg^ flHP

Vice President
Continental Bank

SHOULD first be recognized that the new reserve
and pricing schedule of the Fed continue
economic discrimination against Fed member banks.
During the phase-in period, Fed member banks will be
#expected to pay fees for Fed services at the same rate
being charged non-member banks, although the
offsetting benefit of lower reserve requirements will only
be realized during the phase-in process.
To the extent that the major correspondent banks use
IFed services to assist in processing the activity of
respondent banks, it is only reasonable to anticipate
that the Fed prices will be passed back to the
respondents in some form, although the form will
probably not be the same as the price schedule of the
•respective Reserve banks.
I would also anticipate that the explicit prices of the
Fed will provide an incentive for more activity to be
cleared through the private sector, i.e., correspondent to
regional center bank to money center bank or directly
•from correspondent to money center bank, thus
bypassing the Fed all together. As the major
correspondents have traditionally placed greater
emphasis on customer service, and also have offered
features and availability not provided by the Federal
^Reserve Banks, there appear to be service features as
well as price incentives for more activity to be handled in
the private sector. I would also anticipate that more
local clearing arrangements would be established in
cities and other regions where volume would justify this
It should also be recognized that the advent of Fed
pricing opens up a brand new market for those of us who
have traditionally been active in serving respondent
banks. Previously, it was difficult to solicit much of the
'business of Fed member banks as they had the option, in
effect, of obtaining these services free from the Fed (let’s
not get into the argument of whether the services are, in
fact, free when reserves are maintained). We are now
able to compete on an equal basis with the Fed for the
'business of non-member banks, and we will certainly
aggressively do so.
We would anticipate that our relationships with
correspondents would continue to be as strong as they
are now, and hopefully strengthened as a result of Fed
pricing. One trend that I do see is that many banks will
buy more and more services on a product selection and
evaluation rather than a relationship basis.
There continues to be an overwhelming preference in
^the correspondent market to pay for services with
compensating balances rather than through cash fees. I
would anticipate that this would continue to be true as
this enables banks to obtain full value for the cash
position they maintain either because of required
Ireserves, or because of the practicalities of doing
business. It is also true that the volume of services paid
Federal Reserve Bank of St. Louis

for with cash fees is rapidly and steadily increasing, with
some banks paying cash fees outright, and others
electing to provide compensation for balance deficiencies
through paying a cash fee rather than increasing balance
Our bank no longer offers EDP services to
respondents. In the Chicago market it has been amply
demonstrated that respondent banks prefer the service
offerings of independent service bureaus to the services
offered by correspondent banks.
The most popular services continue to include check
collection, safekeeping, wire transfer, and investment
services of all types, most significant of which are
purchases and sales of government and municipal
securities. Increasingly, credit services, both extended
directly to bank owners and bank holding companies, as
well as commercial overline support of all types, is
becoming one of the most actively used and important
correspondent services.
In my view, between the services provided by
correspondent banks, and the services provided by
consultants and suppliers of all types, there is very little
room for bank associations to fulfill a useful role in
providing specialized services beyond their traditional
educational activities. This is contrasted with the
savings and loan association and credit union market
where associations have historically provided a wide
range of services as these industries did not have
anything comparable to bank correspondents to look to

Vice President
Security National Bank
Sioux City, la.

E FEEL that the Fed pricing structure will make
correspondent banking even more competetive
than it currently is, particularly with item clearance. We
foresee the development of private clearing systems and
less reliance on the Federal Reserve system. Our bank
has been very aggressive with our check collection
service and will continue to be so. We do not foresee any
substantial weakening of correspondent relationships,
because of Fed pricing; however, the correspondent
network will have to continue to be innovative,
aggressive and service oriented in order to retain its
market share.
The reliance in our territory is still on balances as
opposed to fees as a method of payment for most
correspondent services. We continue to hear talk about
fees replacing balances; however, we feel that the
transition will be slow. Correspondent banks will
become more involved in the types of services that lend
themselves to fee payment, such as consulting and
advisory services. When these types of services become
more pronounced, the movement toward fees will
probably follow.
Our bank continues to be very active in electronic
data processing services for our respondent banks. We
feel that there continues to be a role for the
Northwestern Banker, January, 1981

correspondent bank to fill in the data processing field,
and we certainly intend to stay very active in this
business. There continues to be economic and technical
advantages for the respondent in doing processing off
premise. We remain very committed to data processing
and are making every effort to meet our respondent’s DP
We still find that overline and data processing
services are the most popular. Check collection has
become and will continue to be very important as will
consulting and advisory services.

Senior Vice President
National Bank of Waterloo
Waterloo, la.

EW reserve requirements will have little immediate
effect on the bulk of our respondents—since for the
most part vault cash will handle the requirements. Over
the years the reserves should help the Fed in better
credit control and more responsive monetary policy
Fed pricing schedules will help community bankers
better understand the services we have traditionally
priced with balance requirements. There always has
been a gray area in the minds of bankers as to the need of
what they deem to be arbitrary pricing by
correspondents. Now there will be a reliable “hard copy’’
comparison available. I ’m certain that correspondents
will view the pricing as an opportunity to compare costs
and improve quality of service in a competitive
environment. We will continue to monitor programs
such as check collection, funds purchases and sales,
transfers, and processing to make certain they meet or
exceed standards being offered by the Fed and other
Fees will become more important and will be used
more in pricing services. It may be easier for a banker to
pay a monthly statement for services rendered than to
constantly increase balances to provide imputed
earnings to pay for them. As the price of services and
those offered increase, balances necessary must also
increase. It may be wiser for the community banker to
invest his excess funds and pay the fees charged from
actual earnings. As reserves needed increase, this could
become more evident.
Top quality EDP programs are high on our list of
priorities in services for respondents. We want and need
the best programs possible for our bank and test and use
them first before we offer them. Banking is certainly not
static and constantly changing regulations make the
updating of services and program changes a constant
challenge and opportunity. This is why the services of a
good, imaginative EDP Center, responsive to the needs
of community bankers, are so important and why so
many have sold their in-house mini-computers.
Banker associations help provide a non-competitive
vehicle to develop programs by spreading costs over
many that would otherwise defer them or make them
prohibitive. This helps to standardize programs that
might otherwise be difficult to use.
for FRASERBanker, January, 1981
Federal Reserve Bank of St. Louis

Vice President
The Omaha National Bank
Omaha, Nebr.

ORRESPONDENT relationships will not be “busi-^
ness as usual.” With the advent of new reservew
requirements and the implementation of Fed pricing,
relationships between banks will be strengthened only if
the correspondent bank aggressively strives to provide a
wide range of quality services at competitive prices, q
Some developments at Omaha National due to Fed
1. Intensive study of the direct-send program. The
check clearing fee will offset the additional trans­
portation costs.
2. Implementation of a co-mingling check sort to
by pass the Federal Reserve System.
3. Expansion of coin and currency operations to
accommodate correspondent banks.
4. On-line wire transfers eliminating paper entries. •
5. Standard marketing of automated clearing house
Midwestern banks have been slow to accept the use of
fees instead of the traditional compensating balances to ^
pay for services. This change will become much more
evident during the 1980s as banks institute fees for a
wide range of services that were formerly provided at no
specific charge. This will tend to lessen the reliance on
traditional free DDA balances.
The Omaha National Bank continues to believe that
data processing represents a vital service for our
respondent banks. In fact, we are in the final phase of a
substantial updating of our data processing centers with
the latest hardware and software technology. Data^,
processing certainly is not a static environment.
Changes in the structure of EDP will occur within the
next few years. The biggest change likely will be the
trend toward community banks owning their own
mini-computers due to substantial cost reductions th e^
past few years. Major vendors with central processing
units and large programming staffs will provide the
complicated communication software for automated
clearing house, debit card operations, etc. with
maximum benefits for the community bank.
The selection of the most popular services of our
respondent banks is somewhat difficult in that it varies
with the unique situation of each particular bank.
However, that service generally would be:
1. Check collection
2. Loans and overlines
3. EDP processing (all aspects)
4. Bonds & investments (including security and
5. Trust services (This area has received substantially#
more attention within the past few years and will
continue to do so.)
I am philosophically opposed to a broad expansion of
banker associations providing specialized services. I
acknowledge that some services provided by banking*


“Most major correspondent banks will have to become more
aggressive and innovative in the ranges of services offered.”
| associations have been quite successful and have served
®very useful purposes. However, I feel that such services
could be more economically provided directly by
banking institutions if legal and regulatory limitations
were lifted.

Senior Vice President
Northwestern National Bank
Minneapolis, Minn.










Q E S E R V E requirements for nonmember banks
I t because of the 8-year phase-in, and more especially
because of indexing for inflation, shouldn’t be a major
concern for those banks that currently don’t need to
maintain a pass-through balance. Most major
correspondent banks will have to become more
aggressive and innovative in the ranges of services
currently offered. In the unbundling of the pricing of
those services the result could be that the Fed will end up
processing the more costly items. An upward revision of
the Fed’s private sector adjustments to those stated
costs, plus an adjustment for inflationary increases
during 1980 and 1981 calendar years should place Fed’s
prices at the high end of the correspondent banks’ prices.
That would indicate that the existing dormant account
relationships will have to be justified by the respondent
banks. Those account relationships that are using most
of the correspondent services should become stronger.
Many existing member banks and those non-member
banks who are in an RCPC have been using the “free”
collection services of the Fed and with implicit pricing
the “value” of that “free” service must be examined.
At Northwestern Bank we have always been very
aggressive in all areas of service to our respondent banks
and I see no reason at this time to do any different. As a
result, correspondent relationships will be strength­
ened, and our respondents will be looking to us for
guidance and counsel.
In the past, the reserve balance has been the
beneficiary of the largest amount of compensating
balances in the country. The indication so far is that the
Fed wishes to continue that practice with their clearing
balances and service charge for any shortfalls. In order
to compete with Fed services, service balance pricing
must still be offered, but perhaps with some
enhancements. I believe that the future will show a
definite swing toward fee income and away from the
traditional balances. This will apply not only to
correspondent banking, but to banking in general.
Most definitely, our bank does still offer EDP
services. I believe we do and will continue to provide
local and reliable services on a personal basis to our
respondent banks. They are not just a computer
number;instead they are well known and serviced by our
staff. For example, as software and program changes are
Federal Reserve Bank of St. Louis

required by regulation, we do this automatically for our
customers. We provide a back-up in case of disaster; we
show a sophistication of programs update and
modernization of these programs, and we provide
assistance to a bank in vendor selection and operational
assistance within their own bank, i.e. in switching over
to their own system for cost benefit or operational
The most popular services used by our respondent
banks are data processing, overlines, bank stock loans,
bond department, clearing of checks.
In today’s world, the ability to meet the financial need
of our modern society is a challenge which grows more
complex for bankers each day. In order to meet this
challenge, there is leadership needed to pull it all
together to make the best banking technology available
to all of us to serve the needs of our communities. I
believe that associations that we as bankers belong to
should lead in this process.

Vice President
National Boulevard Bank
Chicago, 111.

UR BANK will continue to offer its check collection
services as in the past. We will keep abreast of the
Fed pricing format as it develops, but we will not lower
our pricing “just to be competitive.” I think many
correspondent relationships may become stronger when
some of the respondents find out they have been
receiving pretty good check collection services. I find it
hard to believe the Fed can possibly handle the volume
that will materialize if, in order to make their mark, they
under price the established correspondent bank system.
Even if the Fed had the necessary equipment, where will
the personnel come from?
The success experienced with fee income on
correspondent services is a slow and painful one. I
personally feel it is picking up momentum. As many
banks continue to increase charges on retail services, it
will be easier to adapt in the wholesale area.
Our bank does offer data processing for respondent
banks and requests for these services continue to grow.
There has been a void left in this area by the number of
correspondent banks abandoning this service. Some
respondent banks are leaving commercial computer
applications and have adapted in-house computer
systems and are finding it to be a very time consuming
and expensive venture.
Services used by respondent in order of usage are:
Operation-transit activity, funds transfer, collection,
Bond purchases
Northwestern Banker, January, 1981


“The pricing of Fed services initially will not affect either
the quality or volume of correspondent services.”

Vice President
First National Lincoln
Lincoln, Nebr.

UR EXPERIENCE with fees has been very
limited. The vast majority of the respondent banks
still prefer balances over fees, although, I feel, this
attitude is changing, especially from those banks that
have a large amount of activity. The charging of a fee for
each and every service offered by a correspondent is not
that far down the road, although, I believe, it will be
implemented gradually.
Up until April, 1980, we offered our own EDP services
to our respondents. In April we entered into a contract
with a Texas based computer company. This company
now offers services to our respondents through us.
City banks can offer a computer expertise which is
often too expensive in the community bank. Since
computer technology is changing so quickly, the
community bank needs to rely on a city bank which is
dedicated to computer services and organized well
enough to be innovative, timely and knowledgeable.
Services most popular include: 1 . Overlines,
2. Investment Services, 3. Computer Services, and
4. Bank Card Services.
Bankers associations can provide great benefits to the
community bank in many specialized services. Of
greatest value would be regularly scheduled seminars
and workshops on various bank related functions; (i.e.)
installment lending, investments, trust services, etc.

Senior Vice President
Bankers Trust Company
Des Moines, la.

HE JURY is still out on what effect new reserve
requirements and the Fed pricing schedule will have
on correspondent banking. It could take six months to a
year to shake out all the answers. At this point we feel
the effect could be minimal and correspondent banks can
and will be competitive. This reasoning is based on our
ability to be more efficient and being able to offer a full
range of services. We constantly look at improving our
availability, and changing times will require us to
continually review our pricing schedules. Future
developments: an increase in the price of transit
services, a greater trend toward fee income, and within
two years truncation will be a greater part of the banking

Banker, January, 1981
Federal Reserve Bank of St. Louis

Correspondent banks have always embraced the
concept of compensating balances and will continue to
do so. Fee income is related to specific services such as
data processing. Projections indicate that fee income
will increase in the future, but certainly not at the
expense of balances.
Yes, we will continue to offer EDP services.
Expertise, equipment with the capability of providing a
complete range of services and reports, and software
that is continually updated and designed specifically for
banking needs, will be our goal.
Our most prominent services used are:
(1) Availability
(2) Loan participation assistance
(3) Data processing services
(4) Purchases and sales of Fed Funds
(5) Bank stock loans
(6) Investments
(7) Safekeeping
(8) Coin & Currency
(9) Trust services
I do not feel Banker Associations should provide any
specialized services (such as an Ag Credit Corp.) that
would bring them into direct competition with
correspondent banks and the services they offer thenrespondents.

Vice President
United Bank of Denver, N.A.
Denver, Colo.

HE NEW reserve requirement options have forced
correspondent banks into providing a service which,
under normal market conditions, they might choose not
to offer. The pricing of Fed services initially will not
affect either the quality or volume of correspondent
services. Over a period of time, unless the Fed can
become more efficient and customer service-oriented,
their existing customers may consider moving their
business to a correspondent bank, even knowing that it
will cost them more to do so.
Check collection services will continue to be offered to
those banks who are willing to pay, in fees or balances,
the increased costs. Banks will increase check collection
fees due to Fed pricing and an increased awareness of
handling costs brought about by narrowing profit
Correspondent relationships will tend to weaken if
respondents do not view that service quality is
acceptable. New services revolving around non-opera tional respondent needs will be priced on a cash fee basis
rather than against balances.
United Bank of Denver does not offer EDP services to
respondents. We feel that such a service is a valuable
adjunct to other fee generating opportunities but find it






difficult to justify front end and ongoing software and
hardware expenses when technological, regulatory and
customer demand for change occurs so rapidly.
According to a Rocky M ountain Regional
Correspondent Banking Study prepared by United
Banks of Colorado in July of 1979, the most often used
services in descending order were: Fed Funds, Wire
Transfer, Securities Safekeeping/Coupon Collection,
Credit Card servicing, and Cash Letter & Cash
Management Services.
Corespondent banks provide competition between
themselves in the provision of specialized services to
their respondents. As the spheres of influence by these
banks increase, so will the competition. Banker
associations need not enter the field of specialized
services unless it can be proved over a period of time that
correspondent banks are unable or unwilling to provide a
specific service.

“We will be even more
aggressive in offering
our services.”

Senior Vice President
Drovers Bank of Chicago
Chicago, 111.

HE NEW reserve requirements and pricing
schedule will not have any immediate impact on
correspondent banking. Initially, the reserve will be
Senior Vice President
First National Bank
Minneapolis, Minn.

HE COST of check collection will increase and
volumes will shift, in some cases, in view of the
Fed’s new pricing schedule. However, we will be even
more aggressive in offering our services which I believe
will lead to even stronger relationships with our
respondent banks. Some of the developments we
® anticipate the future may hold are increased prices,
unbundling of pricing, more clearing houses, possible
even regional clearing houses.
I don’t think the time has yet come for full use of fees
in place of balances, but it may well be here very soon.
® Our bank has been a strong supplier of computer
services to our respondent banks and we plan to continue
this key service. We feel we have a better ability than
some other sources to keep up with technical, legal and
regulatory changes; for example, the whole area of
• electronics funds transfer and automated clearing
The most popular services we find used by our
respondent banks are:
1. Check Clearing
® 2. Credit Services
3. Investments
4. Computer Services
5. Fed Funds
Wire Transfer
® 7. Security Safekeeping
8. Coupon Collection
9. Bond Portfolio
Management Advisory
^ 11. Personnel
w 12. International
The first half dozen or so are practically a tie, in my
I feel banker associations should be limited in their
^ provision of specialized services to member banks.
Beyond a certain point, they could be competitive.
Federal Reserve Bank of St. Louis

covered by vault cash. However, as the reserve
requirements necessitate the need for cash reserves to be
placed at the Fed, the respondent bank will start looking
for additional service from the Fed. The city
correspondent will have to be in a position to offer
competitive pricing with the Fed. In order to maintain
its relationship with respondent customers, Drovers
Bank has elected to be a pass-through correspondent,
which gives the respondent bank the option of
maintaining its required reserves at the Fed or with
Drovers pass-through account. It should be pointed out
that the Fed will not relieve the city correspondent of
providing such service as overline participations and
seasonal liquidity participations.
The Drovers Bank offers services such as check
collections. Thus, I must point out that we may have to
become more aggressive in pricing to meet the Fed’s fee
schedule. I see correspondent relationships becoming
stronger because the country correspondent will have
more need in the future for knowledgeable correspondent
banks to assist him in management problems, such as
capital needs, organizational and regulatory. The city
correspondent who makes a sincere effort in assisting his
respondent banks will have a stronger relationship.
Regarding fees versus traditional balances I feel that
the respondent bank still prefers to keep balances with
its correspondent rather than pay fees. It may be that
fees will become more important in the future but I do
not see this happening until the large city correspondent
banks become more consistent in their fee schedules.
The large city correspondent bank is still not sure of its
costs and there has been confusion on fees for services.
The fees must cover their costs plus a margin of profit.
Some-of our most popular services used by our re­
spondent banks include check collecting, overline and
liquidity participations, fed fund transactions, buying
and selling of securities, safekeeping of securities,
providing currency and coin, portfolio analysis and
dealing in commercial paper, negotiable certificates of
deposit and repurchase agreements. I would also like to
point out that Drovers Bank is very active in bank stock
carry loans, including the financing of one bank holding
companies in which we offer special expertise and
I don’t feel banking associations should be providing
Northwestern Banker, Jenuery, 1981


“If the correspondent system is to continue, it must be
nourished by both parties to the relationship.”
specialized banking services. They should function in
the area of training, information on regulatory changes,
and legislative action that may affect the banking
industry. Banking associations should disseminate the
information needed by their members to make a decision
on legislation that pertains to banking.

Vice President
Iowa-Des Moines National Bank
Des Moines, la.

HE NEW pricing schedule of the Fed will have a
much greater effect on correspondent banking
during 1981 than the new reserve requirements. Check
collection charges will go up dramatically because of the
Fed pricing and all banks will attempt to move these
costs on to their depositors. At the same time, we will all
be attempting to move some of our volume from the Fed
to alternative means of check collection, such as direct
clearance with more banks and use of clearinghouse
arrangements when cost effective. This opportunity to
expand clearing arrangements outside of the Federal
Reserve System should be good for the correspondent
business during 1981.
Most of our bank customers cover their service fees
with balances and we expect that this tradition will
continue. Under current regulations there are still some
advantages of covering fees with balances. Each bank
will have to determine which approach is best for it,
particularly considering the expected higher charges due
to Fed pricing.
Our bank continues to be very active in the sale and
service of EE)P services to respondent banks. The
principal advantage of an off-pijemise processor over an
in-house computer is the much better control and audit
features provided with off-premise processing.
The most popular services used by our customers are:
cash letter clearance, overline assistance, EDP services,
Fed Funds and other investment services, and bank
stocking financing.
Most of the innovation and development in the bank­
ing industry in the last few years has come from the
initiative of individual banks attempting to gain an edge
in either marketing or internal operating procedures
over the competition. I am sure this desire to outperform
the competition will continue to cause most of the
changes in products offered and services provided.
Sometimes, because of the enormous costs such as in
EFT Services, an approach such as the Iowa Transfer
System is an excellent result. When services can readily
and economically be provided by individual banks,
competition among those banks will keep prices and
performance at a level that bank associations won’t have
to step in and provide their members with the service.
Banker. January. 1981
Federal Reserve Bank of St. Louis

Senior Vice President
Merchants National Bank
Cedar Rapids, la.

HE correspondent system is under legislative and
regulatory m anipulation and as a result
correspondent bank services have become a very fragile
relationship. If the correspondent system is to continue,
it must be evaluated, enhanced, and nourished by both
parties to the relationship. Traditional service goals
have been eroded by recent competitive developments
but, philosophically, banks must evaluate the cost and
quality of inter-bank services and relate those costs to
those offered by other suppliers, including the Federal
Reserve System. The blurred lines of progression from a
federalized payment system to a nationalized banking
system appear to converge like a two lane highway in a
snow storm.
The exact impact of Federal Reserve pricing for
services and mandatory reserve requirements is difficult
to predict. In the short run, they appear detrimental to
the profitability of correspondent banking. Lower
reserve requirements are promised for all banks in the
long run. The phase-down is programmed over a five
year period, but explicit pricing of services will be totally
imposed during 1981. Although final pricing for specific
services is still under consideration, Fed has the inherent
power to maintain its net income even in the face of
operational losses by raising reserve requirements. Fed
also has interpreted the law to allow the pricing of
selective services at a loss, if necessary, to maintain its
perceived market share. These factors create questions
about the ability of the correspondent bank to compete.
In any event, the correspondent banking relationship
must be a give and take proposition if the private sector
is to remain viable. In the long run, direct check clearing
to respondent banks and the interchange of items
between city correspondents may prove to be the most
cost effective way to enhance the payment system under
a competitive pricing scenerio.
A schedule of fees for services rendered is an option for
the future as ancillary services are developed. Fees for
data processing services are presently in place. In the
future, asset/liability management counseling, person­
nel management services, regulatory compliance
assistance, and credit analysis functions all have
substantial fee potential. On the other hand,
sophisticated analysis systems and daily float
calculations are fine tuned for payment system services.
Payment in balances for such services probably will
continue in the future. The concept of marginal reserves
favors the use of balances to pay for services. Under this
concept the most efficient operation has the greatest
profit potential. The deferred taxation of transactional
profit and the potential for long term internal growth is

the capitalistic dream. Short run profits often are
minimized for long term growth. We must analyze more
closely the pressures which big government and deficit
spending are exerting on our capitalistic society.
We offer data processing services through “BICS,” a
data processing subsidiary of Banks of Iowa, Inc. These
data processing services are generally perceived by our
correspondents to be provided by the bank. There is a
highly tuned sensitivity between the bank and our data
processing subsidiary. The products reflect our mutual
desire for quality service. We know the golden rule that
quality service may only on rare occasion be cheap
service. Through our constant study of changes in
regulations, coupled with an in-house programming
staff, we have assured data processing products which
are current, legal and responsive to the present
requirements of the use.
An accurate and reasonably priced data processing
capacity, coupled with a commitment to a sophisticated
check clearing procedure, is our number one service
through which banks gain availability of funds and
maintain their cash position. More and more banks
realize the need for efficient presentation and payment of
checks, tp keep us from being destroyed by float in the
payment system. Having many check clearing
arrangements with city banks, we are able to present
checks for our own bank and for respondent banks
guaranteeing collected funds availability which beats
the Fed collection schedule.
Overlines, loan participations and bank stock loans,
are our next most valuable service to correspondents.
This is the biggest part of our business and the Federal
Reserve is no competition in this arena. We are
concerned, however, with proposed legislation
broadening the powers of the Farm Credit System. This
far reaching legislation has the potential to adversely

“ (Loans)are the biggest part
of our business and the
Federal Reserve is no
competition in this arena.”
affect the future of all agricultural banks and financial
institutions. We also offer a cash management facility to
enable banks to stay closely invested on a daily basis
while at the same time maintaining their liquidity
• through sale or purchase of funds in the Fed Funds
Market. This, too, is a very valuable service for our
The function of bank trade associations seems to be in
• transition, like many other aspects of the banking
business. Bankers are seeking services from sources
outside the correspondent system because they often
mistake positioning for competition. It is my opinion
that a poorly positioned correspondent bank is, in fact, a
™ deterrent to the correspondent system in the long run. A
strong correspondent banking system promotes access
to alternative and competitive banking services. The
small community bank will have a real problem if its only
_ alternative for services is a trade association or its own
^ regulator.
Federal Reserve Bank of St. Louis

Senior Vice President
National Bank of Commerce
Lincoln, Nebr.

HE FED’S proposal for explicit pricing of services
has been discussed at length in recent weeks.
Resolution of the controversy surrounding the proposals
will likely take some time, and I would suspect that the
implementation will be delayed. If, in final form, Fed’s
pricing schedule is competitive with the private sector, I
would visualize the following effects on correspondent
(1) The correspondent banking system will likely
develop a sophisticated check clearing system outside

“There is also a possibility
our respondent banks may
form regional clearing houses.”
the Fed. The key will be availability versus per item
charges. Regional banks, like NBC, will develop
operational procedures that will enable us to direct send
to Money center correspondent banks for better
availability. City clearing house associations will be
formed to avoid Fed per item charges. There is also a
possibility that our respondent banks may form regional
clearing houses.
Because of Fed pricing the days of free service are
over. All banks will have to bear the costs, either directly
or indirectly, of Fed’s pricing schedule. As a result, the
respondent bank will have to evaluate its pricing policies
and take a look at pricing or repricing the services it
provides its customers.
The National Bank of Commerce is exploring its
pricing of services and will be competitive in its pricing
so that we will continue to provide the best possible
service at a competitive price. We have developed
explicit pricing for some receiving a separate fee, these
services are paid for in the form of balances from our
respondents. We provide our respondents with an
account analysis that details the above.
Yes, our bank does offer EDP service to our
respondents. The city banks can assist the respondents
in the areas of management information, asset and
liability management, seminars and in providing timely
quality information.
The most popular services we provide for our
respondents are handling check collections, offering
overline and liquidity loan participations, purchasing of
fed funds, fund transfers, selling fed funds, buying and
selling U.S. Government and agency securities and
EDP services.
The Bankers Association should provide update
information on current banking issues. This can be done
by newsletters, seminars and active participation on
legislation matters.
Northwestern Banker, January, 1981


Vice President
Commercial National Bank
Peoria, 111.

FEEL that the new reserve requirements, at the
outset, will have little effect on the majority of our
banks. Vault cash should cover their needed
reserves. The new Fed pricing schedule presents an
excellent opportunity for us as a regional bank to
strengthen existing relationships and to add new ones.
We have already taken steps to increase our transit
operation capabilities and we intend to compete
aggressively with the Fed on availability and pricing.
Add to that our own transportation network estab­
lished in 1978 (we entered the transportation ser­
vice at the urging of our respondents) and our intended
return to direct sends, we feel that the bottom line,
dependable service, will be easy to sell.
Commercial National has and continues to advocate
balances as opposed to fees. Our experience has been a
very good one.
With regard to EDP service to respondents, our bank
is in the midst of a major conversion to a total on-line
system. A number of our respondent banks will convert
to this system as well. However, many of our banks who
cannot justifiably afford this type of service will over the
next year or two look to other processors for whatever
services they need. At this point, we will only be offering
the total on-line package.
I feel that the most popular services used by our
respondent banks are our cash letter services, bond
department and money desk, and overline assistance.
Probably the only sure thing about correspondent
banking in 1981 is that it will be more challenging and
perhaps more rewarding than previous years.

Senior Vice President
Denver National Bank
Denver, Colo.

E KNOW there will definitely be some impact of
the Fed on correspondent banking, but no one
knows to what degree. The Fed is like the little devil in
the bright red suit standing there with the three pronged
pitch fork saying, “pay me now or pay me later,’’ with
each prong of the fork representing a service of the Fed;
namely, monetary control, regulation and, now,
correspondent services. I t’s my contention that
correspondent services will continue to be strong if we
innovate and profitably price products. Our business is

Banker, January, 1981
Federal Reserve Bank of St. Louis

people-oriented and people do business with people they
As far as hard dollars are concerned, we would all like
to pay on a fee basis when interest rates are high and, of
course, vice versa when rates are low. We are certainly
fielding questions from our correspondents regarding
fees during the current economic environment. We do
not see much happening yet because we don’t really
know where we will be in the price mode.
To move services at low cost is a major objective of all
businesses. Data processing is certainly a vehicle to this
objective. I see us getting back into this segment within
a minimum range period.
I ’ve visited with a number of bankers regarding why
they do business with one bank versus another. The one
thing that comes loud and clear is responsiveness—a
certain caring for their problems—rapid clearing
systems, rapid responses to participations, and day to
day contact for investment advice just to name a few.
I feel that banker associations should get back to what
they were designed for and that is to represent their
constituencies in the political arena. Of course, keeping
its membership informed through conferences and
special seminars is paramount.






Senior Vice President
Central National Bank & Trust Co.®
Des Moines, la.

S VERY FEW non-member banks are required to
post reserves, there will probably be little effect on
correspondent banking. However, if non-member banks
are allowed to set up clearing accounts with the Fed, this
may remove balances from the correspondent bank
system that we have in the past relied upon to offset cost
of check collections, other services and overlines.
Central National Bank of Des Moines will be very
aggressive in check collection and EDP services. We
believe correspondent relationships will be stronger. It
is our intention to maintain a strong experienced staff in
correspondent banking.
Fees versus balances has yet to become a viable
alternative. In time to come, should there be a
deterioration in collected balances, fees will have to be
Yes, we offer EDP services to our respondents. Large
correspondent banks will be in better position to provide
software education and hardware selection to their
respondents. Correspondent banks are also in a better
position to provide proper guidance for an EFT
program. Rest assured that computer programs
provided are in proper regulatory compliance. To stay
with the “State of the A rt’’ in bank processing, it will be
necessary to commit resources and research to the future
of EDP Services. The fast moving pace of electronic
(Turn to page 33, please)








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Financial Corporation
An Affiliate of Northwest Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981


PRESIDING-John W. B allatin e, v.p./gr.
head, host bank.

ECONOMIC OUTLOOK is presented by
Edward M. Roob, sr. v.p., host bank.

Predict Better Business in 1981
EARLY one-half of the 660
bankers attending the First
National Bank of Chicago’s annual
correspondent bank conference re­
cently predicted the prime rate to be
in the area of 10 to 12 percent by this
time next year.
The poll showed that 48 per cent
favored the 10-12 range; 40 per cent
thought it would be 12 per cent to 14
per cent, and nine per cent felt the
prime would be above 14 per cent.
Despite the fact that 67 per cent
predicted better general business
conditions next year, about 47 per
cent believed the unemployment rate
to be seven to eight per cent in 1981.
In the area of inflation, 56 per cent
predicted that at the end of 1981, the
rate would range from 8 to 10 per cent
and another 42 per cent thought it
would be higher.
Gary P. Brinson, chief investment
officer of FNB, warned that the stock
market seems to be “underestima­

ting” the risks associated with the
governm ent’s new m andate to
control inflation.
Long-term bond yields are expec­
ted to decline in 1981, he noted, as the
pressures to control inflation begin to
be felt.
Yields will still be at near-recordhigh levels of 10.5% in government
bonds, but declines in these rates will
bring about approximately 15% in
price appreciation.
“When coupled with the current
yield of over 12%,” Mr. Brinson
continued, “this combination pro­
duces a total return of over 27 %. In
fact, we believe that there is a fair
chance that the total return from
bonds between now and late 1981
may exceed 30%.”
Here is what other bank officials
said about the future of the economy:
Durable goods: Sales of 1981model U.S.-manufactured automo­
biles will about match the 6.3 million

MORE than 67 per cent of bankers attending the First of Chicago conference predicted
better business conditions a year from now. Shown here from left are: Ed Kalafat, sr. v.p.,
First Bk. Systems, Minneapolis; Al Simpson, chmn., First Bk. of Milwaukee; G.L. Bickle,
chmn., First Bk., Albert Lea; Starr Kirkland, pres., First Bk., Mankato; Collin Johnston,
v.p., host bank, and John Troutman, pres., First St. Bk., Pekin, Ml.

Banker, January, 1981
Federal Reserve Bank of St. Louis

total of the 1980 model year, said vice
president William S. Race. Imports <11
will capture about 27 per cent of the
market, or about 2.3 million units, he
He predicted a continuing strong
demand for smellier, less profitable
cars which he said would put further
pressure on profits of automakers. “I
would be surprised if more than one of
the U.S. automakers were profitable
in their domestic operations in 1981,”
he said.
Steel: The steel industry is seeing
“ some slight strengthening of
orders,” Race said, “But nothing of £
the magnitude needed to offset this
year’s dismal performance when
earnings will be down 35 to 40 per
dent below last year’s level.”
Housing: High mortgage rates will (|i
continue to depress the housing
industry nest year, said vice
president Daniel Luciani. He predic­
ted new starts will be “only in the 1.5
million unit range” compared with an <|
estimated 1.25 million starts in 1980.
While high inflation and mortgage
rates have put home ownership
beyond the finances of many
Americans, there should be a market
for “higher density single family
units,” including townhouses and
other units best suited for the
shrinking size of the average
household and to energy conserva­
tion, Lupiani said.
Construction of new office struc­
tures, on the other hand, will increase
in 1981 as the result of $9.5 billion in
new permits issued during 1980, up
from $7.8 billion a year earlier, he
Agriculture: The price of farm land
will increase 5 to 10 per cent next
year, predicted vice president
William E. Conway Jr., noting that
factors that have increases farm
values in recent years continue to
exist—need for farm enlargement,
competing uses for land, good export
markets, and inflation. Still, next
year’s price increase will be below the
13 per cent average annual gain of the
last 10 years, he said.
Retailers: The current fiscal year
“will not be a banner one for
retailers,” said senior vice president
James S. Brannen, who noted
continuing problems of a soft
economy, high unemployment, rising
expenses, and high interest rates.
Discount retailers should do better
than other segments of the industry,
he said. While catalog showroom
merchandisers have some of the same


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Federal Reserve Bank of St. Louis

Northwestern Banker, Jenuary, 1981

(Continued from page 30)
technology will find many in-house systems to become
economically and operationally obsolete.
The most popular services used by respondents are:
1. Check processing (availability)
2. EDP Services
3. Overlines
4. Investments
»5. Safekeeping
6. Trust services
7. Systems and procedures consultation
Association services should be limited to legislative
measures, education and informational services.
Associations should not be competing with their
members. Central National Bank has never turned down
a legitimate overline or direct loan because of liquidity.
Central National Bank has committed the resources of
its bank to support Iowa agriculture and industry.

Executive Vice President
Davenport Bank & Trust Co.
Davenport, la.

NTIL final pricing schedules are released it will be
difficult to determine the impact of the recent
Federal Reserve actions. We assume, however, that a
quality product priced competitively will continue to
advantages as discounters, Brannen
said he expects a shakeout of the
weaker chains.
In his formal talk at the annual
banquet, Barry F. Sullivan, newlyelected chairman, called on corres­
pondents to contribute ideas on ways
to improve his bank’s ties with their
banks. Except in special circumstan­
ces in which the bank will make clear
its intentions beforehand, the First of
Chicago intends to avoid mistakes of
the past and will not compete head to
head with community banks, accor­
ding to Mr. Sullivan.
Girard Bank Converts
All Checking Accounts
Girard Bank of Philadelphia has
automatically switched all of its
200,000 retail checking accounts to a
5 Va % transaction account under the
NOW account authority. Girard will
pay interest on consumer balances in
excess of the amounts needed to cover
a $2 a month maintenance charge and
activity charge, such as 30 cents per
check, 12 cents for bank-by-phone

Banker, January, 1981
Federal Reserve Bank of St. Louis

provide us with a fair share of the correspondent
business. We believe most respondents will prefer to'
continue to handle the majority of their business with a
local correspondent who can usually respond more
quickly and meaningfully. It will be difficult for the
Federal Reserve to provide the level of personal service
our respondents are accustomed to. The end result may '
well be stronger correspondent relationships.
Our experience to date indicates that the vast
majority of correspondent services are compensated
with demand balances. The obvious exception would be
data processing services which are normally on a fee
basis. Although we anticipate no immediate changes in
this structure, it would be fair to add that the new
reserve requirements could substantially alter the
amount of dollars kept by banks in their correspondent
accounts. Regardless of how compensation is derived,
correspondent banks will certainly be forced to price
their services at a profitable level. With the current
interest rate volatility, compensating balances become a
highly unpredictable method of payment, for both the
purchaser and provider of services. With this in mind,
we may well see some movement towards fee pricing of
correspondent services.
Yes. In addition to the obvious cost benefits of
purchasing data services, a city correspondent can offer
greater continuity of m anagem ent and data
communications specialists. Turnover of key personnel
within a small operation can be critical. In addition,
large city banks can offer assistance in keeping abreast
of the ongoing burden of regulation, especially in the
complex area of data processing. Lastly, there is the
unquestionable benefit of the inter-bank relationship
which is generated between city and community banks.
Data processing, cash letter processing, Federal
funds, wire transfers, overlines, safekeeping of
securities are the most used services.

payments and 10 cents for ATM
checking account withdrawals, trans­
fers from checking accounts and
checking account inquiries. No
minimum balance is required.
Girard will continue to offer a 7 %
credit on average monthly balances,
and a double credit of 14% to direct
deposit customers.
Philips Data of England
To Market Diebold ATMs
Philips Data Systems of Colches­
ter, England, and Diebold, Incorpor­
ated of Canton, Ohio, have an­
nounced the signing of an Interna­
tional OEM agreement wherein
Philips will purchase and market the
Diebold manufactured 9000 Series
A utom atic
M achines
(TABSW Total Automatic Banking
Systems) in the United Kingdom.
Philips Data Systems is a part of the
worldwide group of Philips compa­
Philips will supplement its existing
wide range of electronic banking
terminals presently sold throughout

the United Kingdom with the TABS
9000 which it will market under the
Philips name. Philips will also
provide the necessary technical,
software and support service for the
United Kingdom market.
Diebold Chairman, Raymond
Koontz, noted that this was the
second International OEM agree­
ment reached with Philips. On
October 1, Philips and Diebold
announced the signing of a similar
agreement with Philips Data Systerns Ltd. of Canada. He further
stated that this OEM agreement
provides Diebold with major sales
opportunities in the United Kingdom
without the investment required to
duplicate its U.S. sales, service,
software and support organization
Mr. Koontz also said that the
agreement is for the TABS product
line only and has no effect on the
business of Diebold, Incorporated in
the export of its full line of bank and
commercial security systems and
equipment which it manufactures
and markets internationally.







MERCANTILE Trust’s old building of the late 1800s reflects that period while new building towers above the city.

•Mercantile Observes 125th Anniversary





HE Missouri General Assembly,
125 years ago, granted nine St.
Louisans a charter to establish a
financial institution. On December 7,
1855, the group located its newly
incorporated establishment, which it
named the State Savings Institution,
in modest quarters at the corner of
Main and Vine, a site near which the
north leg of the Gateway Arch now
The State Savings Institution’s
beginnings were inauspicious. It
opened in a rented one-room office
with capital of only $8,500. But the
infant institution was destined to
endure and, eventually, to occupy a
significant niche in the commercial
history of St. Louis.
The tiny State Savings Institution
was the earliest forerunner of the
bank that is today, by most
measures, the largest bank in
Missouri and among the largest in the
country, Mercantile Trust Company
Despite the tumult of its early
years, Mercantile’s ancestor bank
had grown strong enough to lend the
Union Government, during the first
six months of the Civil War, more
than $100,000.
Following the war, St. Louis
resumed its role as gateway to the
West. The State Savings Associa­
tion, as the institution was then
called, provided financial services to
individuals and firms involved in
Federal Reserve Bank of St. Louis

trade with the developing western
and, particularly, southwestern terri­
Growth continued for the bank
following the Civil War, as well as
name changes—first to the State
Bank of St. Louis, then to State
National Bank of St. Louis. A series
of mergers followed. One of these was
with Mercantile Trust Company, the
first to bear the bank’s present name,
which was founded in 1899. The
building constructed for it after the
turn of the century continues to serve
today’s Mercantile Trust as the main
bank building.
In 1951, Mississippi Valley Trust
Company and Mercantile-Commerce
Bank and Trust were consolidated
into to d ay ’s M ercantile T rust
Company. Numerous historical
events are associated with the
background of the merged banks.
Mississippi Valley planned financing
for the 1904 St. Louis World’s Fair.
An officer of State National Bank,
later merged with Mississippi Valley
Trust, loaned $15,000 to help finance
Charles Lindbergh’s historic solo
flight across the Atlantic in 1929.
Mercantile Trust today is one of
the largest banks in the nation with
more than $2 billion in assets. Ten
years ago, Mercantile Bancorporation was founded with Mercantile
Trust as the lead bank in a holding
company that now has 29 affiliate
banks and 57 offices across the state.

Hibbard, O’Connor & Weeks
Changes Name to Westcap
The Westcap Corporation is the
new name of Hibbard, O’Connor &
Weeks, Inc., investment bankers.
Concurrently, two subsidiaries, Hib­
bard & O’Connor Government
Securities, Inc. and Hibbard &
O’Connor Municipal Securities, Inc.
changed their names to Westcap
Government Securities, Inc. and
Westcap Securities, Inc. respective­
ly“The name change culminates a
year of reorganization for the
company,’’ said Clifton Iverson, Jr.,
president. “Frankly, the company
had problems a year ago when I
arrived,” he continued, “but we
believe those problems are behind us
now. Our controlling stockholder,
who took over last year from the
former principal, has given the
support and financial stability to
effect these changes. The new
management team is in place. We
have new people in virtually all
management positions. More impor­
tantly, we have a new business
philosophy and different priorities.”
“We’ve done our homework,” Mr.
Iverson emphasized. “ Our new
owners and new management have
proved during this past year that the
internal strengths of our company
were intact and quite able to meet the
needs of our customers. The name
change is the end result of that work.
Westcap will continue to be a strong
regional distributor of securities
serving our customers nationwide.”
Northwestern Banker, Jenuary, 1981

H is banker has to be there
in good tim es and bad.
When credit is easy, a successful farmer
has lots of bankers knocking on his door.
But chances are he’ll stick with the banker
who stuck by him when money was tight.
It takes a banker with a lot of foresight
to build a relationship with someone in a
cyclical business like this.
And it helps if your correspondent

bank has the same kind of foresight.
At American National, we’ve never
backed away from correspondent business
when money got tight.
Because bad times can be the best times
to start a relationship with an aggressive
correspondent bank. Shake hands with
American National. The bank for business.







33 N'orth La Salle / La Salle a t Wacker 60690/Phone (312) 661-5000

We’re the ban k for business
Federal Reserve Bank of St. Louis



J. D. Lemmerman, pres., Monmouth
W. J. Hocter, exec. v.p., Chicago

AMBI Suggestions for State Legislation
TATE legislature proposals,
suggested by the Association for
Modem Banking in Illinois for










introduction during the 1981 spring
session of the Illinois General
Assembly, have been announced by
its chairman, Charles L. Daily.
He said, “Our AMBI Bankers’
Legislative Advocacy Program for
1981 has been created to officially
inform legislators of our position of
endorsement on suggested proposals
which we believe would be of
significant benefit to the entire
banking industry of the state by
allowing banks to better serve thencustomers.
“The specific legislative proposals
were developed following examina­
tion of the results of a statewide
survey mailed this fall by AMBI to all
Illinois banks. In addition to working
for lim ited m ulti-bank holding
company legislation, AMBI has been
working for several years to improve
the conditions under which all Illinois
banks must operate. We have done
this through a comprehensive
legislative program - the AMBI
Banker’s Legislative Advocacy Program, which is designed to provide
the industry with an assertive,
positive voice in Springfield,’’ Mr.
Daily said.
The 1981 AMBI Legislative
Advocacy Program is as follows:
♦Legislation to allow for the
amortization of bond premiums and
the deduction for expenses incurred
in generating the income from state,
local and municipal bonds.
♦Legislation to remove rate
limitations on revolving and instal­
ment loans.
♦Legislation to authorize safety
deposit boxes at limited service
♦Legislation to allow bank security
guards to carry weapons off
*A new act regulating the
Federal Reserve Bank of St. Louis

procurement and use of debit cards.
Similar acts have been introduced in
other states.
♦Authorization for the billing of
the state for expenses incurred by a
bank in the inventorying of safe
deposit boxes.
♦Legislation for a provision under
the revolving loan authorization to
allow for the securing of revolving
credit with an equity interest in real
♦Legislation to delete the require­
ment that school fund deposits be
Mr. Daily said, “During past
sessions of the Illinois General
Assembly, AM BI, through its
Legislative Advocacy Program, sup­
ported successful legislation, passed
into law, which grants interest rate
parity to state banks with national
banks on single payment loans;
grants banks the authority to write
renegotiable rate mortgages and
variable rate mortgages; allows
exception to the in terest rate
limitation for loans made by a
pension plan to a participant of such a
plan; increases the maximum rate,
term and amount of instalment loans;
temporarily eliminates the usury
ceiling for mortgages secured by
residential real estate; and, disallows
federal exemptions for an estate in
bankruptcy and reinstates Illinois
William Freese Dies
William J. Freese, 88, retired
president and chairman of State
Bank of St. Joseph, died recently. He
was one of the organizers and first
president and chairman of the board
for the bank, which opened January
4, 1956. He held both positions and
was a director continuously until the
time of his retirement in January
1975. For 15 years, he was cashier of
the Royal Illinois Bank and was a
retired mortician.

Skopec Receives Award
Kenneth A. Skopec, president and
director of The Mid-City National
Bank of Chicago, received the
Human Relations Award from the
American Jewish Committee recently
at the Chicago Palmer House.
Irving Rothm an, director of
development for the committee, said
Mr. Skopec deserved the award due
to “his outstanding contribution to
programs that seek to elevate the
quality of life for all people.”
Mr. Skopec has been with the
Mid-City National Bank of Chicago
since 1952. His civic leadership roles
relate to such diverse activities as
Mary Thompson Hospital, Chicago
Boys Club, St. Germaine School
Board, West Central Association and
Committee of Bank Management of
the Illinois Bankers Association. On
December 4, he was also installed as
president of the Easter Seeds Society
of Chicago.
Harold McMillan Dies
Harold McMillan, 64, executive
vice president of the Woodford
County Bank of El Paso, died
recently. He started his banking
career with the Union National Bank
of Macomb, and came to the El Paso
bank in 1960. He was one of the
organizers of the Bank of Carlock in
1971 and served as a vice president
and a member of its board of
Promoted at Sears Bank
Emory Williams, chairman and
chief executive officer, Sears Bank
and Trust Co., Chicago, has
announced the following promotions:
Wayne Hillock, vice president; Jean
W ehrly, second vice president;
Thomas Begg, assistant vice presi­
dent; Patricia Painter, trust admini-



stration officer; Daniel Matthews,
leasing officer, SBT Leasing Corp.;
Elaine Levin, assistant trust admini­
stration officer, and Casimir J.
Orlowski, operations officer.
Northwestern Banker. January. 1981


Illinois News

American National Opens New Motor Bank

AMERICAN National’s new 6th Street and 4th Avenue motor bank has opened in Rockford.

MERICAN National Bank and
Trust Co.’s new 6th Street and
4th Avenue motor bank has opened

new motor bank has nine drive-in
lanes in addition to two business
banking windows plus a staging area
large enough to accommodate as
many as 60 cars if necessary.
“This new facility will solve the
peak-period traffic backup we have
had concurrent with our rapid growth
in recent years,” Mr. Frankenthal
said. “It will also almost quadruple

the number of transactions that can
be handled per hour at our present f
main bank drive-in,” he continued.
The building incorporates the
latest technology for energy conser­
vation, including a massive trombe
wall system designed to help both (|).
heat and cool the building by
absorbing or dissipating solar
energy, as appropriate to the season.

assistant cashier. During her ten
years in the banking field, she has
Northbrook Trust & Savings Bank held positions with the Capitol Bank
recently named new officers in of Chicago, the National Bank of
Evanston and the All American Bank
commercial lend­
of Chicago.
ing and opera­
tions, president
New Charter Issued
Larry G. Gillie
A charter has been issued to the
Burt J. Miller
Morgan County Community Bank,
has been elected
1342 South Main Street, Jackson­
a vice president
ville, according to William C. Harris,
in charge of the
commissioner of banks and trust
bank’s commer­
cial loan depart­
The state bank’s total capitaliza­
ment and Caron
tion $1,250,000 will consist of
S. Paulik has been named operations $500,000 in capital stock; $500,000 in
officer with responsibility for teller surplus and $250,000 reserve for
operating expense. There will be
Prior to joining Northbrook Bank, 50,000 shares of stock with a par
Mr. Miller served as a vice president value of $10 each.
and head of the construction loan
Officers are: Lawrence W. Craw­
department in Sears Bank & Trust ford, Jr., chairman of the board;
Co.’s commercial banking division. James P. Bruner, president, and
He also was an assistant vice Thomas N. Wetherell, vice president.
president in the real estate depart­
Directors are: F.E. Gregory,
ment of the First National Bank of Bluffs; Jon Gray Noll, Springfield;
Larry A. Werries, Chapin; James P.
Mr. Miller holds an AB degree in Bruner, Lawrence W. Crawford, Jr.,
political science from the University P. Devon Davidsmeyer, Ernest C.
of Illinois in Urbana and an MBA Downey, CathleenC. Green, John W.
degree in International Business P a rro tt, J r ., and Thomas N.
Wetherell, Jacksonville.
from the University of Chicago.
The Federal Deposit Insurance
Before taking her present position,
Ms. Paulik served the Dempster Corporation has approved an applica­
Plaza State Bank of Niles, 111. as tion for Federal deposit insurance.

Fed Denies Application
The Federal Reserve Board has
announced its denial of the applica­
tion of Barrington Bancorporation,
Inc., Barrington, to become a bank
holding company by acquiring
Barrington State Bank.

for business in Rockford, according
to bank marketing vice president,
Charles P.A. Frankenthal. The
facility will replace the drive-in
banking area attached to the main
According to Mr. Frankenthal, the
Northbrook Names Officers

Banker, January, 1981
Federal Reserve Bank of St. Louis

Bank Sponsors Student
Exchange Program

COLONIAL Bank and Trust Company plans
to sponsor a high school student in next
summer’s American Field Service student
exchange program, according to bank
president C. Paul Johnson. Mr. Johnson
made the comments at a recent luncheon
held for students who participated in last
sum m er’s AFS program. His bank
sponsored a visit to Portugal for Laura
Kennedy of Steinmetz High School.
Pictured here in a meeting prior to the
luncheon are (I. to r.): Dr. Joseph Sirchio,
principal of Steinmetz High School; Mr.
Johnson; Dr. Angeline Caruso, acting
Chicago superintendent of schools, and
Laura Kennedy.






* Two w ays to find out
* w hat w e can do for you.
1. Send for one of our booklets
Our “Guide to Correspondent
Banking Services” is designed to
give you an overview of the dif­
ferent types of services we offer
your bank. Call or write and weTl
be glad to send one your way.
2. Send for one of us
If you want to find out exactly
what we can do for you, send for
one of us.
WeTl come to your bank to dis­
cuss your specific needs and ex-

plain how we could work with
you on a correspondent basis.
And, when you deal with us, you
don’t deal with a correspondent
bank. You deal with a correspon­
dent banker.
One who is assigned to you on a
permanent basis so you develop
a long-term, personal relation-

ship that will help set long-range
plans and goals.
To request a booklet or a
banker, write or call (toll free)
(800) 322-2212.

the Human
Interest bank
Commercial National
Bank of Peoria m e m b e r f .d .i .c .

^ Guide


PHONE: (309) 655-5000

^ Om

Banki sp°nden


' S




Federal Reserve Bank of St. Louis


Northwestern Banker, January, 1981

The Am erican Fed funds m arket.
A rewarding experience
for both o f us.
When we buy or sell your
Fed funds, you benefit ana so do
we. And that's what we think
banking is all about,
vour Fed funds
Ycou'll find your
transactions are handled quickly
and accurately at American.
Obviously, that's to our advan­
tage as well as yours.
In addition to the purchase
and sale of Fed funds, our corre­
spondent services include: over-

lines, bonds, data processing,
cash letters and many other
We understand the impor­
tance of correspondent services
to you, the Independent banker.
So we'll do our best to provide
them as efficiently as possible.
Because that kina of service can
give us something we both
want —a mutually profitable

Am erican
National Bank
and Trust
C om pany
Correspondent Department
5th & Minnesota Street
St. Paul, Minnesota 55101
(612) 298-6331
Member F.D.I.C.

The Independent Bank s C orrespondent Partner.

Federal Reserve Bank of St. Louis



R. E. Gandrud, pres., Glenwood
T. L. Jeffers, exec, v.p., Minneapolis

Duluth Bank Tops $1 Million in MHFA Loans
N the past five months, First
National Bank of Duluth has
committed $1,301,000 in low-interest
loans to help Duluth area residents
buy new homes, surpassing its
original Minnesota Housing Finance
Agency 1980 allocation by 60% and
nearly tripling its previous MHFA
mortgage loans allocation.
With all of its MHFA funds now
com m itted, F irst N ational has
applied for an additional allocation
for the Duluth area, which should be
determined by early December.
“Through direct participation in
the MHFA program, First National
Bank of Duluth has been able to
assist 40 area families in purchasing
homes this summer and fall during a
difficult buying market, and we hope
to expand our participation as
financing is made available,” said
Kathleen Watczak, First National
mortgage loan officer in charge of the


Name Change at Brooten
The stockholders of the State Bank
of Brooten have voted to amend their
_ certificate of incorporation to change
9 the bank’s name to Bonanza Valley
State Bank.





Charter Issued at Alden
Commissioner of Banks, Michael
J. Pint, has announced the issuance
of a state bank charter to the
Americana State Bank of Alden. The
charter was issued for the purpose of
conversion of the First National Bank
of Alden. The bank address is 195
North Broadway. The stated capital
stock of the bank will be 2,500 shares
at par value of $100.
The board of directors consists of
William R. Johnson, E.E. Bentdahl,
L.W. Grinolds, Douglas J. Thomp­
son and Sally A. Robson. William R.
Johnson is president and managing
Federal Reserve Bank of St. Louis

Elected at Benson
The board of directors of First
Bank Benson has elected Vernon
Smith president
and managing of­
ficer. He suc­
ceeds N. Thomas
Wiedebush, who
has been elected
p re s id e n t and
managing officer
of First Bank
W illm ar. M r.
Smith was vice
p re s id e n t and
second officer of First Bank Benson
since 1979.
Mr. Smith joined FBS in 1973 as a
management associate at the Vermil­
lion Branch of the National Bank of
South Dakota. He was promoted to
assistant vice president in 1977.

MHFA program.
When authorized by the Minnesota
Legislature, the Minnesota Housing
Finance Agency sells revenue bonds
to provide financing for low-interest
loans and direct assistance to
qualified home buyers. The 1980
MHFA allocations provided for an
interest rate of 9.25 %, currently 5 %
below the average market interest Stockholders change Name
rate of 14% for home loans.
The stockholders of the Golden
Valley State Bank have voted to
change the corporation’s name to
Bank Sale Announced
Golden Valley State Bank, A United
A group of loc«l investors has Bank.
bought the controlling interest in
Cosmopolitan State Bank of Still­ Elected at Austin
water, A.R. Kircher, president,
The board of directors of First
announced recently.
Bank Austin has elected William L.
Mr. Kircher said both he and Connelly presArthur Edstrom, senior vice presi­ dent and chief
dent, will remain in their positions executive officer.
with the bank, and that three new M r. C onnelly
officers have been added to the succeeds William
management team. They are James W. S trausburg
H. Gillespie, executive vice presi­ who has joined
dent; John Z. Dahl, senior vice First Bank Sys­
president, and L. Edwin Erickson, tem, Inc. as sen­
vice president and cashier.
ior vice president
The new owners of the bank are Mr. and group execu­
Gillespie; W. Andrew Boss, presi­ tive, Minnesota W.L. CONNELLY
dent of St. Anthony Park State Bank South Group.
of St. Paul; Howard Guthmann,
Mr. Connelly began his banking
C.P.A., partner in the accounting career as a trainee at First Bank
firm of Wilkerson, Guthmann and Austin in 1961 and from 1962 to 1964
Johnson; Reynolds Guyer, artist, served as an examiner for First
composer and inventor; Leonard System Services, Inc., the service
Ouardnik, president of Citizens State subsidiary of FBS. He joined First
Bank of Montgomery, Minnesota, Bank Edina in 1964 as assistant vice
and Thomas Rohricht, attorney with president and manager of the credit
the law firm of Doherty, Rumble and departm ent. Mr. Connelly was
elected president of First Bank
Mr. Gillespie was president of Rio Babbitt in 1969 and in 1972 was
Verde Development Co., prior to elected president of First Bank
joining the bank. Mr. Dahl has 25 Northfield. He has held his most
years of banking experience with recent position as president of First
Northwest Bancorporation Bank in Bank Grand Forks, N.D., since 1975.
Duluth and Minneapolis and in Great
Mr. Connelly holds a bachelor’s
Falls, Mont. L. Edwin Erickson degree in business administration
brings 28 years of banking experience from the college of St. Thomas, St.
Northwestern Banker, January, 1981

Twin Cities

HE board of directors of
N o rth w e st B a n c o rp o ra tio n
(Banco) has announced the election of
a new management team for the
M inneapolis-based bank holding
Chester C. Lind, presently presi­
dent and chief executive officer, will
remain chief executive officer and was
named chairman. John W. Morrison,
chairman and chief executive officer
of Northwestern National Bank of
Minneapolis, Banco’s largest affiliate
bank, was elected vice chairman of
the corporation, and Robert A.
Krane, executive vice president of
Banco, was elected president and a
director of the holding company.





In a related move, the board of
Northwestern National Bank of
Minneapolis elected E. Peter Gillette,
Jr., president and chief executive
officer of the bank. Mr. Gillette has
served as president and chief
operating officer since July 1979.
Mr. Lind explained that the
boards’ actions are intended to
strengthen the corporation’s man­
agement team to provide the
corporation with a transition man­

Banker, January, 1981
Federal Reserve Bank of St. Louis

agement team in preparation for his
Mr. Lind was named president and
chief executive officer of Banco in
July 1979 following the accidental
death of Banco president and chief
executive officer Richard H.
Vaughan. Mr. Lind said he plans to
step down as c.e.o. the latter part of
1981, and at that time, it is intended
that Mr. Morrison will take over
leadership of the organization.
Mr. Morrison will become a
member of Banco’s executive office,
whose other members are Mr. Lind,
Mr. Krane, Walter C. Johnson,
executive vice president, and Gerald
M. Kanne, executive vice president.
Mr. Lind has been with Banco for
45 years. He served as president of
two Banco banks—First National
Bank of Aberdeen, S.D., and the
First National Bank of Duluth,
Minn.—before being named execu­
tive vice president of the holding
company and a member of the
executive office in 1975. In February
1979, he was named senior executive
vice president, a post he held until his
election as president and chief
executive officer.
Mr. Morrison joined Northwestern
Bank as chairman and chief executive
officer in July 1976. He had been with
Honeywell Inc. for 28 years, as vice
president and chief financial officer
from 1968 and a director of the
company from 1972.
Mr. Krane has served as president
of two of Banco’s largest banks—
Iowa-Des Moines National Bank in
Des Moines, la., from 1974 until 1976
and the United States National Bank
of Omaha, Neb., from 1977 until
1979, when he was named executive
vice president of the corporation and
a member of Banco’s executive office.
Mr. Gillette joined the bank in 1959
as a securities analyst and held a
variety of positions in the trust, retail
banking and commercial banking
areas. In 1967, he was elected a vice
president and advanced through

various management positions until
being elected executive vice president
in 1974.



EVERAL senior promotions and
changes in banking group re­
sponsibilities at
First Bank Min­
n e ap o lis have
been announced
by D .H . A n­
keny, Jr., chair­
man find chief
executive officer.
R ic h ard W.
S ch o en k e has
been advanced to
executive vice
president. Alan F. Naylor, Warren T.
Plante, James L. Reissner and
K enneth A. Wales have been
promoted to senior vice president.
Mr. Schoenke will head Banking
Group I; Robert J. Anderson,
executive vice president, will head
Banking Group II, and Joseph R.
Kingman, vice chairman, assumes
responsibility for the retial metropoli­
tan group and the trust group.
Mr. Schoenke’s Banking Group I
will be made up of the following:
International Banking Department,
headed by H. William Anderson,
senior vice president; M idwest
Banking Department, headed by Mr.
Reissner, and N ational C entral
Division, headed by Robert H. Scott,
vice president.
Mr. Anderson’s Banking Group II
will be made up of the following:
National East/W est Department,
headed by Mr. Plante; Special
Industries Department, headed by
Mr. Naylor, and Correspondent
Banking Department, headed by Mr.
Under Mr. Kingman, the Trust
Group will be headed by Donald R.
Koessel, executive vice president,
and the Retail/Metropolitan Group
will be headed by David R.
Christenson, who returned to the
bank December 1 after five years as



What this symbol means in the Midwest.


Call your fu ll-se rvice correspondent b an ker (6 1 2 ) 3 7 2 -8 2 0 0

Of Minneapolis

An Affiliate of Northwest Bancorporation

M em ber FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

W hen farm ers,
feeders and ranchers
have to produce,
so do you.
F a rm e rs , m e rc h a n ts , m a n u f a c tu r e r s , a lm o s t a ll
of y o u r c u s to m e rs . T h e ir w o rk c a n ’t w a it fo r g o o d
tim e s . A n d g o o d tim e s o r b ad , th e y a ll d e p e n d
o n y o u fo r h elp . So w h e n y o u n e e d a c o rre s p o n d e n t,
y o u n e e d o n e y o u c a n d e p e n d on.
Y ou n e e d F ir s t M in n e a p o lis.
F ir s t M in n e a p o lis g iv e s y o u o n e sim p le
c o m m itm e n t. W h e n y o u n e e d u s, w e’ll b e th e re .
P e rio d . I t ’s o ffic ia l policy.
So w h e n y o u r c u s to m e r s a r e r e a d y to p ro d u c e
a n d y o u fin d y o u n e e d a c o rre s p o n d e n t w h o c a n
p ro d u c e , w e’ll be read y .
If y o u h a v e q u e s tio n s a b o u t a n y of o u r
C o rre s p o n d e n t S e rv ic e s, c a ll K en W ales, S e n io r
V ice P re s id e n t, (612) 370-4687. Y ou’ll g e t a n s w e rs
a n d a c o m m itm e n t y o u c a n c o u n t on.


First Bank Minneapolis

"When you need us,w ell be there.”
F ir s t N a tio n a l B a n k of M in n e a p o lis , 120 S o u th S ix th S tr e e t • M in n e a p o lis , M N 55402 • M e m b e r FD IC .
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis

We bring experience,
innovation to ag financing.
Meeting the rapidly increasing capital demands
of agriculture is a chief concern not only of our
region's farmers and ranchers but also the banks
who serve them.
That is why we formed AgCo — to modernize
agricultural lending by tapping new sources of funds
to help you meet the growing needs of your finest
agricultural customers.
Large, Short-term Loans



m-* rn

AgCo specializes in large, short-term agricultural
loans — $250,000 to $4 million — which you can
provide to your customers on a correspondent basis.
These loans are financed through the sale of
insured, A-l rated commercial paper, drawing funds
from our nation's money centers to the agricultural
heartland. This unique financing method offers
a ready source of funds, often at rates lower than that
of competitive lenders.
A Century of Experience

AgCo is one of many financing tools available
from Omaha National. We have been lending to agri­
culture for more than a century and continue to
provide the expertise required to help you and your
customers determine the best financing package.
To discover how AgCo and Omaha National can
help you serve your customers better, contact
your Omaha National representative, or call AgCo
at (402) 348-6546

A gC o/T he Omaha National Banl^
Subsidiary of Omaha National Corporation

17th & Farnam — Omaha, Nebraska 68102

Member FDIC
Federal Reserve Bank of St. Louis

Minnesota News
president of the Citizens State Bank,
St. Louis Park.
Included in the Special Industries
Department will be the sales/equipment finance division, headed by
Wallace V. Blomquist, vice presi­
dent. Reporting to this division will
be the sales finance division, headed
by Donald C. Haagenson, vice
president, and the equipment finance
division, headed by David A.
McChesney, vice president. In
addition, the natural resources
division will be headed by John T.



J. Robert Hoffman, vice president,
will head the new Banking Group
Services Division. Reporting to him
will be Roger W. Raina, assistant
vice president, cash management
division, and David N. Anderson,
assistant vice president, administra­
tive services division.
Also at First Bank Minneapolis,
Michael C. Losey has joined as a
commercial banking officer in the
metropolitan corporate banking divi­
Mr. Losey formerly was a lending
officer in the agricultural department
of the Farmers & Merchants Bank
Federal Reserve Bank of St. Louis

and Trust Co. in Aberdeen, S.D. He
graduated from South Dakota State
University in Brookings, S.D.
William Garber joined as an
assistant vice president and assistant
manager in the personal banking
center. Mr. Garber formerly worked
at First Bank Edina as assistant vice
president and manager of their
personal banking center. He holds a
bachelor’s degree in finance from
University of Oregon.
Richard Briden joined as assistant
vice president in the financial
adm inistration departm ent. Mr.
Briden formerly worked as corporate
accounting manager for the H.B.
Fuller Co. He is a certified public
accountant and holds a master’s
degree in business from Washington
Stanley Gove joined as an
assistant vice president in the
metropolitan division. He is respon­
sible for supervising and directing the
activities in Small Business Adminis­
tratio n and other governm ent
guaranteed loan programs. Mr. Gove
was formerly with Summit State
Bank in Richfield.
F irst Bank M inneapolis also
announced the promotions of 17
employes. Included in the promo­
tions are one vice president, nine
assistant vice presidents and seven
Michael Boncher was promoted to
vice president in the east-west
correspondent banking division from
assistant vice president in the same
The following employes were
promoted to assistant vice presi­
dents: Gerald Brennan to assistant
vice president in the equipment
finance division from commercial
banking officer in the same division;
Thomas Palumbo to assistant vice
president in the interim construction
loans division from commercial
banking officer in the same division;
Marianne Peterson to assistant vice
president in the trust agency/custody division from trust officer in the
same division; William Lavin, Jr., to
assistant vice president in personal
trust portfolio management division
from trust officer in the same
division; Anthony Crea, Jr., to
assistant vice president in the sales
finance division from instalment
banking officer in the same division;
Minnie Shroeder to assistant vice
president in the bond department
from bond investment officer in the
same department; Dolores Walstrom
to assistant vice president in the bond

department from bond investment
officer in the same department, and
Edward Whelan to assistant vice
president in the bond department
from bond investment officer in the
same department.
The following employes were
promoted to officers: Larry Nelson to
bond investment officer in the bond
department from senior bond sales
representative in the same depart­
ment; Louise Minor to cash
management officer in the cash
management division from cash
management representative in the
same division; John Noble to
international banking officer in the
IBD operations division from assis­
tant manager/letters of credit in the
same division; Roger Boerger to real
estate officer in the mortgage loans
division from sales representative in
real estate marketing; Mary Gooderl
to trust officer in the personal trust
division from personal trust adminis­
trator in the same division; Hope
Binner to operations officer in the
methods research division from
training coordinator in the same
division, and Jane Mitchell to
training officer in the human
resources department from training
representative in the same depart­
* * *
Steven W. Johnston has been
appointed liaison credit officer southern Minnesota group for First
Bank System, Inc.
Mr. Johnston has been associated
with FBS since 1976 when he joined
First Bank Fairmont, Minn., as a
management training associate. He
was promoted to assistant cashier in
1977. In 1979 he was appointed
manager of the bank’s detached
facility. Mr. Johnston has most
recently served as assistant vice
president and agricultural loan officer
for First Bank Fairmont.
A graduate of the University of
Minnesota, Mr. Johnston holds a BS
degree in agriculture.
* * *
Acquisition Approved
The Federal Reserve Bank of
Minneapolis announced its approval
of the application by Clara City
Bancorporation, Inc., Clara City, to
become a bank holding company
through the acquisition of the Clara
City State Bank.













Midland Correspondent team. Not only can you
call them anytime you need some fast answers,
you can call them toll free. THE NUMBER IS
1-800-752-4200 IN MINNESOTA* The names
are Stan Peterson, Mike Bodeen, Jackie Dunn
and Marge Lamosse. They represent the
strength and service of a substantial financial
institution. But, more importantly they represent
the team spirit it takes to give your bank the
best our bank has to offer
*In North Dakota and South Dakota, call 1-800-328-8678.

Lto R : Stan

Peterson, Mike Bodeen, Jackie Dunn, Marge Lamosse

Midland National
Federal Reserve Bank of St. Louis

Northwestern Benker, January, 1981

Minnesota News
Donald J. Rose has retired from
F irst Bank Bloomington Lake,
Minneapolis, af­
ter 42 years with
First Bank Sys­
Mr. Rose star­
ted his career
with First Bank
System in 1938,
at the St. An­
thony Falls of­
fice, as a messen­
ger. He trans­
ferred to First Bank Robbinsdale in
1954, as assistant cashier. In 1957, he
joined First Bank Bloomington Lake
as assistant cashier in general loans.
He was promoted to real estate officer
in 1978.



Cheryl Miller has been elected
operations officer. Ms. Miller joined
First Bank Bloomington Lake in
November, 1976, as bookkeeping
supervisor. She was made bookkeep­
ing and proof supervisor in March,
1978, and has been working as
operations assistant since November,
1979. Doug Hafner has been elected
sedes finance manager. Mr. Hafner
started with First Bank Bloomington
Lake in August, 1976, as a teller and
was made teller supervisor in 1977. In
June, 1978, he became the sales
finance collector and was made sales
finance manager in February, 1979.
* * *
Michael J. Shade has been named a
senior vice president and manager of
systems in the operations group at
Northwestern National Bank.
Mr. Shade came to Northwestern
from Raleigh, N.C., where he was
president of a consulting firm dealing
with electronic funds transfer sys­
tems. The new manager also has been
director of marketing for TRW in
Orlando, Fla., and director of
research and manager of systems,
computer operations and check
processing at banks in the New York
City area.
* * *
Banker, January, 1981
Federal Reserve Bank of St. Louis

Frederick L. Deming, president,
chief executive officer and director of
National City Bancorporation, has
announced several appointments to
the B ancorporation’s board of
Those named were Wendell R.
Anderson, David L. A ndreas,
Dorothy Inez Andreas, Marvin
Borman, Kenneth H. Dahlberg and
Ben E. Fellows.
Mr. Anderson is a partner with the
law firm of Larkin, Hoffman, Daly &
Lindgren, Ltd. Previously he served
as a United States senator and as
governor of Minnesota.
Mr. Andreas, formerly an officer at
National City Bank of Minneapolis
was named vice president of National
City Bancorporation, in addition to
being named a director. Mr. Andreas
also serves as a director of National
City Bank.
Ms. Andreas, a director of Channel
2 Public Television of Miami, Fla.,
serves as a trustee of Millikin
University of Decatur, 111. and as
chairman of the board of trustees of
Barry College, Miami, Fla.
Mr. Borman is a partner in the law
firm of Maslon, Edelman, Borman,
Brand & McNulty and serves on
National City Bank of Minneapolis’
board of directors.
Mr. Dahlberg is chief executive
officer and chairman of the board of
Detection Sciences, Inc. and is a
board member of National City Bank
of Minneapolis.
Mr. Fellows, president of Twin
City Barge & Towing Co. since 1979,
previously served as president of
Environmental Graphics, Inc. Mr.
Fellows has also served as an officer
with N ational City Bank of
The new appointees join Frederick
L. Deming, Walter W. Heller and C.
Bernard Jacobs on the Bancorporation’s board.

president and manager of banking
systems in the operations and audits
department since 1979.
A graduate of Northern State
College in Aberdeen, S.D., Mr. Hilt
holds a BA degree in business



Two officers from Northwestern
National Bank of Minneapolis have
been appointed to American Bankers
Association positions by ABA
president Lee Gunderson.



C. Paul Lindholm, senior vice
president and head of Northwestern’s
consumer & offices banking group,
has been appointed to the ABA
council. Mr. Lindholm will represent
Region Five for a one-year term.
Donald G. Pederson, senior vice
president and head of the correspon­
dent banking department of North­
western was appointed by Mr.
Gunderson to a three-year term on
the ABA executive committee of the
correspondent banking division.



John G. Stumpf has been elected
assistant vice president in the
commercial len­
ding department
of First Bank
S e c u rity , S t.
Mr. Stum pf
has been associa­
* * *
ted with First
Thomas A. Hilt has been elected Bank System ,
vice president-operations support of since 1976 when
he joined First
First Bank Sys­
Bank State, St.
tem, Inc.
Paul, as a management associate. In
Mr. Hilt joined
1977 he joined the liaison credit
FBS as an exam­
division at First Bank System, Inc.
iner in 1967. He
as a credit representative and was
was promoted to
elected a credit officer in 1978.
a s s is ta n t vice
Mr. Stumpf holds a BS degree in
p re s id e n t and
finance from St. Cloud S tate
operations officer
University, and masters of business
—data process­
administration degree from the
ing in 1975. He
University of Minnesota.
has held his most
* * *
recent position as assistant vice


Donald R. Lindeman, Assistant Vice President, Southwestern Minnesota, South Dakota, Montana (612) 291-5583


“ First, I take care o f the custom ers’
problem . . . then I take care o f the paperw ork.”
“ In today’s fast-changing financial world, time is
money. That’s why we stay abreast of the
frequent market changes, the up-to-the-minute
economic developments, the latest regulations. . .
“When you need fast answers, I know how
to cut through all the red tape and get them. I
take care of your problems . . . then I take care
of the paperwork.
“There aren’t many problems I haven’t run
into before, working with all my Correspondents.
If a complex problem does arise, I can call upon
the full resources of First Bank Saint Paul.
“We can provide you with cash
management, portfolio analysis, international

letters of credit, EDP services . . . everything you
need to remain competitive today.
“My job is to take some of the work out of
your paperwork.”

First Bank
Saint Paul
Correspondent Bank Division

We do our job.
You get the credit.
The First National Bank of Saint Paul • Member FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981


MANAGEMENT CONFERENCE participants included from left: John W. Morrison, chmn.,
host bank; Donald G. Pederson, sr. v.p., host bank, and Lee Gunderson, pres., ABA,
Osceola, Wise.


Touch Challenges of the 1980s
EW complexities, new competi- not anticipate the trem endous
tition, an inflationary and changes now underway in banking.
volatile economy - the tough
George Drakey, principal with
challenges of the 1980s - were Peat, Marwick, Mitchell, St. Louis,
discussed at the 16th Annual described “How To Increase Bank
Correspondent Banking Manage­ Profits Through A sset/L iab ility
ment Conference and Duck Dinner, Management.” He suggested that all
sponsored by the Northwestern operations should be reviewed,
National Bank in Minneapolis last including net interest margins, cash
management/float, compensation for
John W. Morrison, newly-elected officers and employes and data
chairman of Northwest Bancorpora- processing techniques.
tion, told the group of 550 bankers
The agricultural outlook was
that when he left Honeywell to join presented by Arlan Tengwall, vice
the bank five years ago, a leading president, and Larry Wipf, assistant
businessm an advised him th a t vice president, both from the host
“running a bank would be like bank. They indicated that the
shooting fish in a barrel and that you December drop in grain prices was
couldn’t lose as long as you didn’t get temporary and that the price trend
too greedy.” Mr. Morrison said he has to be up for wheat, corn and
was sure that the businessman did beans. They predicted no big increase


in the cattle supply and a decline in
hog numbers due to high corn prices.
Farm production costs are scheduled
to rise about 11 per cent in 1981, the
same as 1980.
A key speaker at the Conference
was Lee A. Gunderson, president of
the American Bankers Association
and president of the Bank of Osceola,
Wisconsin. Mr. Gunderson reported
on the major issues facing the ABA,
including the McFaddan/Douglas
Acts; IRS resolutions on one-bank
holding companies, the question of
capital adequacy, and the Farm
Credit Act (now passed even though
opposed by ABA). He suggested that
starting in early 1981, Senator Jake
Garn (Utah), new head of the Senate
Banking Committee, plans to look at
current banking regulations with the
thought of either reducing or
eliminating a number of them.
Retail banking was discussed by C.
Paul Lindholm, senior vice president.
Using a “ 1989 vantage point,” Mr.
Lindholm “looked back” to see the
following: NOW accounts (1981);
EFT terminals not regarded as
branches (1982); elimination of usury
laws (1985); reciprocal state laws on
branches (1987), and interstate
banking (1989). Mr. Lindholm
emphasized that fund management
would be the name of the game in the
1980s. He added that controlled
growth should be given serious
consideration by
Donald G. Pederson, senior vice
president and head of the host bank’s
correspondent department, presided
at the business session and at the
duck dinner. Four members of the
Minnesota Vikings answered ques­
tions from the audience.

AG LENDING was discussed by Arlan Tengwall, v.p., and Larry Wipf, a.v.p., host bank. RIGHT - Retail banking was discussed by C. Paul
Lindholm, sr. v.p., host bank.
Banker, January, 1981
Federal Reserve Bank of St. Louis

Minnesota News

First State Bank Begins Construction

ARCHITECTS drawing of the First State Bank, Grove City.


Elected at First National
Election of Dennis N. Whitmer to
the position of trust officer by the
board of direc­
tors of First Na­
tional Bank of
Duluth was an­
nounced by pres­
ident Dennis W.
Mr. Whitmer
will specialize in
marketing First
National’s Trust
Department ser­
vices and in new business develop­
He holds a BS degree in history
from K ansas S tate U niversity,
achieved in 1971; a master of science
degree in education, majoring in
guidance counseling, and a law
degree from the University of Kansas
School of Law, achieved in 1979.

D. PETERSON, president of with a drive-up teller. The mezzanine
■ the First State Bank, Grovefloor consists of future offices, open
City, has announced that construc­ desk area, employes lounge and





tion has begun on their new bank
The new facility was designed by
Dykins Associates, a Minneapolis
based firm. Passive solar concepts
have been designed into this new
facility which allows the potential of
incorporating proven active solar
devices when they become available.
The main banking level consists of
3365 square feet and 1670 square feet
make up the mezzanine level.
The new banking facility provides
a total of five teller stations which
includes anew accounts station. Also
provided is a safe-deposit vault and
lobby with the balance of the main
level consisting of an officers area,
private offices, insurance office,
bookkeeping and equipment space

storage area.
The exterior of the building is brick
and rough sawn cedar board siding
with bronze colored windows and
bronze colored metal spandrels.
The interior of the building
consists of acoustical tile ceiling with
integrated lighting, wall materials of
wood, vinyl fabrics and carpet. The
floors will be carpeted and glazed tile
will be used in the lobby and other
high traffic areas.
The lighting, heating, ventilating
and air-conditioning systems are
provided with controls and devices
for the conservation of energy where
Completion is scheduled for April

Promoted in Mankato
The Northwestern National Bank
of Mankato has announced the
promotion of Kathleen M. Pytleski to
commercial banking officer and a
change of title for Patrick M. Burnell

Ms. Pytleski started her career in
banking at the State Bank of
Fairmont in 1971. In June 1973 she
joined the staff at the Northwestern
National Bank of Mankato. In 1974
she left to join the Banco, Inc.
auditing staff and returned to
Northwestern in Mankato in 1975 as
a credit analyst. She also worked as a
personal banker and since October
1979 has been working in the
commercial banking department.
Mr. Burnell started his banking
career in 1974 with the Northwestern
National Bank of Minneapolis in the
controller’s division. In January 1978
he joined Northwestern of Mankato
as an accounting officer.
Federal Reserve Bank of St. Louis

Elected at Worthington
The board of directors of First
Bank Worthington has elected Elden
W. Ranee presi­
dent and mana­
ging officer. Mr.
Ranee was execu­
tive vice presi­
dent and mana­
ger of the main
office of the Na­
tional Bank of
South Dakota in
Sioux Falls.
Mr. Ranee be­
gan his banking career in 1956 as
bookkeeper at First Bank Minot,
N.D. He joined the Huron Branch of
the National Bank of South Dakota
as an auditor in 1960. He held various
positions at that branch and was
promoted to assistant vice president
and assistant manager in 1968. He
was elected vice president in 1969.
Mr. Ranee joined the Madison
Branch of the National Bank of South
D akota as vice president and
assistant manager in 1970 and was
promoted to branch manager in 1973.
In 1974, he joined the main office of
the National Bank of South Dakota
as senior vice president and manager.
Mr. Ranee has held his most recent
position as executive vice president
and manager since 1976.
Mr. Ranee succeeds Francis M.
Schreder, who was elected president
and managing officer of First Bank
Grand Forks, N.D.
Northwestern Banker, January, 1981


Minnesota News

Elected at Robbinsdale
Timothy J. Lacey has been elected
vice president/second officer and
senior credit officer of First Bank
Robbinsdale, according to Kenneth
C. Sheehan, president. Mr. Lacey
began his career with the Bank of
America in October 1971. He began
with First Bank System at First
Bank Billings, Mont., in 1978 as
assistant vice president and was
promoted to vice president in March
1979. Mr. Lacey graduated from the
University of Montana with a degree
in business administration and a
degree of m aster in business
administration from the University
of Santa Clara Graduate School of



Also at First Bank Robbinsdale, L.
A1 Kalka has been elected a vice
president. Mr. Kalka began his
banking career in 1970 as an
instalment loan officer at First Bank
Robbinsdale. In 1974 he joined First
Bank System as a credit analyst. In
1978 he rejoined F irst Bank
Robbinsdale as an assistant vice
president. Mr. Kalka received a
bachelor’s degree in business admin­
istration from the University of
North Dakota.
Harley R. Robinson was elected to
the board of directors. Mr. Robinson
is president of Burmeister Electric
Co. in Robbinsdale.
Joins Staff at Buhl
The board of directors of the First
National Bank of Buhl has an­
nounced that Ro­
bert C. Anderson
has joined as
assistan t vicep re s id e n t and
lo a n o f f ic e r .
Mr. Anderson
was previously
e m p lo y e d as
branch manager
of Thorp Credit
and Thrift office R C' ANDERS0N
in Virginia since June of 1978. He had
Banker, January, 1981
Federal Reserve Bank of St. Louis

been employed with Thorp since managing officer of that bank in
November of 1975 and has also 1963.
managed the branch office in
Burnsville. Mr. Anderson is a Banco to Purchase
graduate of the Professional Business
Worthington Bank
Institute of Minneapolis.
Northwest Bancorporation (Ban- %
co) has signed an agreement to
Wiedebush Elected
purchase the S tate Bank of
The board of directors of First Worthington in Worthington, Minn.,
Bank Willmar has elected N. Thomas an action which has been approved by
the boards of both organizations, #
Wiedebush pres­
Banco president Chester C. Lind and
ident and manag­
State Bank president John Troth
ing officer. He
have announced.
succeeds Oliver
The acquisition is subject to
H. Hagen, who
approval by the appropriate regula- #
has been elected
tory authorities.
p re s id e n t and
The Worthington bank, located in
managing officer
southwestern Minnesota, had assets
of First Bank
of $44.8 million and deposits of $40.4
Fargo, N.D. Mr.
million as of September 30, 1980.
W iedebush has
m o st re c e n tly N.T. WIEDEBUSH
served as president of First Bank Application Approved
The Federal Reserve Bank of
Mr. Wiedebush has been associa­ M inneapolis has announced its ^
ted with FBS affiliates since 1968 approval of the application by
when he joined First Bank Aberdeen, Raymond Bancshares, Inc., Ray­
S.D. He joined First Bank System as mond, to become a bank holding
a liaison credit officer in 1974. In company through the acquisition of
1975, he joined First Bank Miles the Farmers State Bank of Raymond. ^
City, Mont., and was promoted to
vice president in 1976. He joined
First Bank Benson as vice president Elected in Burnsville
The board of directors of First
and second officer in 1976 and was
Bank Burnsville has elected Robert
elected president in 1978.
L. Stehlik, pres­
ident and a direc­
Elected at Spring Valley
tor. Mr. Stehlik
The board of directors of First succeeds Jeffrey
Bank Spring Valley has elected T. Pearson who
K e n n e th
has accepted a
Churchill chair­
p o s itio n w ith
man and chief
D.A. Case Asso­
executive officer,
c ia te s , I n c . ,
and Thomas B.
Johnson, presi­
dent and a direc­
to the electronics
Mr. Johnson
Mr. Stehlik began his banking
began his bank­
career in 1956 with First Bank
ing career as a
Austin. In 1958 he moved to First •
trainee at First
Bank Minnehaha in Minneapolis, and
Bank Mankato in 1969. He was in 1974, he joined FBS Financial,
elected an instalment loan officer in Inc., the leasing and mortgage
1970, assistant cashier in 1971 and banking subsidiary of First Bank
assistant vice president in charge of System. Mr. Stehlik became vice
credit review in 1977. Mr. Johnson president and commercial loan
was elected to his most recent manager of First Bank Southdale,
position as vice president and Edina, in February 1976. He was
manager of commercial loans in promoted to the head of the lending
January 1979. He holds a BS degree division in January 1977 and to his
in mathematics from Mankato State most recent position as second officer
of the bank in August of that year.
Mr. Churchill has been associated
Mr. Stehlik received an associate of
with First Bank Spring Valley since arts degree from Austin Junior
1935, and was elected president and College.


South Dakota
J. W. Thomson, pres., Centerville
J. M. Schwartz, exec, mgr., Pierre

Elected at National Bank of South Dakota

Promoted at Sioux Falls
The board of directors of North­
western National Bank of Sioux Falls
announced the following promotions
and staff changes, according to C.P.
“Buck” Moore, president: Lynn C.
Thormodsgard to controller, admin­
istrative group; Marilyn J. Murray to
personal banking officer, downtown
branch; Jeffrey G. Platek to
credit/compliance officer, adminis­
trative group, and Melissa J. Miller
to mortgage loan representative,
downtown branch.

HE BOARD of directors of the 1975, he joined First Bank Fargo,
N.D., as a vice president and was
National Bank of South Dakota,
Sioux Falls, elected Nels E. promoted to senior vice president and
Tumquist chairman and
chief trust officer in 1978. He was elected
executive officer and David S. to his most recent position as
president and managing officer of
Birkeland president and a director.
First Bank Fargo in 1979.
Mr. Birkeland holds a BA degree in
business administration from Con­
cordia College at Moorhead, Minn.,
and a law degree from the University
of North Dakota at Grand Forks.






Irene Bank Acquired
The Federal Reserve Bank of
M inneapolis has announced its
approval of the application by Irene
Mr. Tumquist has been associated Bancorporation, Inc., Irene, to
with First Bank System affiliates become a bank holding company
since 1951 when he joined First Bank through the acquisition of the
Helena, Mont., as an assistant Farmers State Bank.
cashier. He was elected an assistant
vice president in 1955, vice president Watertown Bank Additions
Melvin Breitag has joined First
in 1956 and president and managing
officer in 1960. In 1968, Mr. National Bank of Watertown as
Tumquist joined the affiliate liaison cashier. He was previously employed
division of First Bank System as a at Northwestern Bank of Helena,
vice president. He was elected Mont., where he was assistant vice
president of the National Bank of president in charge of operations. He
South Dakota in 1972, and has served replaces Rick Burcham who was
as president and chief executive transferred to Banco’s affiliate at
officer since 1974.
Dillon, Mont.
Mr. Breitag received his BS degree
A graduate of the University of
Montana in Missoula, Mr. Tumquist in business education from Northern
holds a BA degree in business. He is State College in 1967. Following
also a graduate of the University of graduation he was employed by the
Wisconsin’s Graduate School of First National Bank of Aberdeen and
became an audit department manag­
Banking in Madison.
Mr. Birkeland began his affiliation er. In 1976 he was named branch
with First Bank System in 1964, operations officer. In 1977 he was
when he joined First Bank Rochester, promoted to assistant vice president
Minn., as a management trainee. He in charge of operations at the Banco
joined First Bank Southdale, Edina, Bank in Helena and served there until
Minn., in 1966 and was promoted to coming to Watertown.
Named to the bank’s board were
assistant vice president in 1969. He
was elected vice president of the Eula Hinderaker, homemaker and
commercial and real estate depart­ civic leader, Merlin F. Jeitz,
ments, and marketing for that bank president of Cook’s Inc., and Clark E .
in 1972. Mr. Birkeland joined First Redlinger, secretary/treasurer of
Bank La Crosse, Wis., in 1973 as vice Redlinger Bros. Plum bing and
president of commercial loans. In Heating Co., Inc.
Federal Reserve Bank of St. Louis



Mr. Thorm odsgard graduated
from the University of South Dakota
in Vermillion with a degree in
accounting and received his Certified
Public Accountant certificate in
1975. Prior to being appointed
controller of the administrative
gropp, Mr. Thorm odsgard was
assistant vice president of Banco,
Inc., Banco’s internal audit affiliate
in Sioux Falls.
Mrs. Murray has held a variety of
clerical and supervisory positions at
the downtown branch since 1974.
Since January 1980, Mrs. Murray
has been the personal banking/student loan supervisor at the downtown
Mr. Platek received his bachelor’s
and master’s degree in Economics
from South Dakota State University
and has been with Northwestern
Bank since July 1978. Prior to
moving to the credit department, Mr.
Platek was a mortgage loan officer at
the downtown branch.
Ms. Miller graduated from the
Northwestern Banker, January, 1981

University of South Dakota with a
degree in business management and
has been a management trainee with
Northwestern Bank since June 1980
until being reassigned to the real
estate departm ent, downtown
Retires in Roscoe
Catherine “Kate” Meier, assistant
cashier, First State Bank of Roscoe,
retired recently.
She started work
in N o v e m b e r
1956 on a parttime basis as
a bookkeeper.
Within a short
period of time,
she went on full
time as a teller
and bookkeeper.
She was promo­
ted to assistant cashier in January
The bank held “Kate” Meier day
on November 21st.

9th Western Ag Institute Jan. 13-16
HE 9th Western Agricultural
Lenders Institute will be held
January 13-16 at Laramie. The

University of Wyoming- sponsored
event was designed by bankers with
agricultural loan officers, ranchers
and farmers in mind.
Registration will begin at noon,
Tuesday, January 13, in the Medicine
Bow Room, School of Extended
Studies & Public Services. Speakers
Tuesday will include Howard Hjort,
director, Economics Policy Planning
& Budget, U.S.D.A., Washington,
Other speakers featured during the
Celebrates Anniversary
Institute will include Leon Miller,
The Farmers & Merchants State Alte Veroe Industry; Doug Agee,
Bank of Plankinton recently hosted a Extension Farm Management spe70th anniversary party for all their
customers and friends. Approximate­
ly 1500 attended. A free turkey and New Diplomas Available
dressing dinner was served, followed Through ABA’s AIB
by a one hour program and a two hour
The fields of bank cards and bank
dance featuring Myron Floren and his
orchestra. The bank was started in marketing are the latest areas of
1910 and assets have grown from study leading to diplomas available
$320,000 in 1920 to $22,128,000 in through the American Bankers
1980, acording to H.R. Page, Association’s American Institute of
The diplomas—Applied Banking:
Bank Card major and Applied
Banking: Bank Marketing m a jo rElected in Rapid City
are now available. They bring to eight
Charles T. Undlin, president of the the to tal number of diplomas
First National Bank of the Black currently available through the
Hills, announced Cajer Neely has AIB’s new educational program.
been elected assistant controller at Both diplomas represent ABA’s
the main office in Rapid City.
commitment to provide bankers with
Mr. Neely graduated from the current information on topics essen­
University of Wyoming in 1976 with tial to the improvement of human
a BS degree in business administra­ resources and banking productivity.
tion. He started with the First
Bankers interested in developing
National Bank in May 1977 as an expertise in bank marketing choose
agricultural representative and was from courses and seminars such as
transferred to the Sturgis office in marketing for bankers, selling bank
October 1977 as an agricultural loan services, consumer compliance, bank
officer. In May 1980, Mr. Neely cards, new accounts and instalment
returned to the main office to work in credit.
the credit department. He has also
For more information on AIB’s
completed two years at the Midwest new educational program, call Doug
School of Banking in Morris, Minn. Crow, (202) 467-4156.
Northwestern Banker, January. 1981
Federal Reserve Bank of St. Louis

cialist, University of Wyoming; Less
Jordan, Colorado National Bank, and ig|
H.H. Watt, First National Bank of

Join First Wyoming
Steven D. Schafer, G. Robert
Jourgensen and David W. Perino
have joined the staff of First
Wyoming Bank- Casper, according
to Jay F. Bordewick, president.
Mr. Schafer joined the bank as vice
president and cashier, the same
position he held at Montgomery
County National Bank of Red Oak,
la., the past eight years. He also
served as a director of the bank in Red
Oak. Mr. Schafer graduated from
Iowa State College with a BS in
industrial administration.
Mr. Jourgensen has over 17 years
of banking experience. He began
working for First National Bank of
Casper in 1961 and was a vice
president in commercial loans when
he left in 1978 to work for Bill Sauer
Mr. Perino joins the bank as a
lending officer in the instalment loan
department. He has a BA degree
from Ambassador College in Pasade­
na, Cal. He was previously branch
manager of Avco Financial Services.
Mr. Bordewick also announced the
promotions of Jody Voelker to
assistant vice president, Janet King
to instalment loan officer and Pat Els
to real estate loan officer.
Ms. Voelker joined the bank’s real
estate department in February 1978
and was formerly the Casper manager
for Transamerica Mortgage.
Ms. Els has been with First
Wyoming Bank-Casper since Octo­
ber 1979 and was previously
associated with the W yoming
National Bank.
Ms. King has been with First
Wyoming Bank- Casper since March











Elected at Fargo
The board of directors of First
Bank Fargo has elected Oliver H.
Hagen president
and managing of­
ficer. Mr. Hagen
succeeds David
S. Birkeland who
C. N. Davis, pres., Cando
been elected
H. J. Argue, exec, dir., Bismarck
president of the
National Bank of
South Dakota in
Sioux Falls. Mr.
NDBA Committee Agrees on Nominees
Hagen has most
ORRIS NELSON, president of Bank, W illiston and for vice recently served
the Scandia American Bank, president and treasurer- Darold as president of First Bank Willmar,
S ta n le y , and
Mr. Hagen has been associated
chairman of the
First Bank System affiliates
NDBA nomina­
since 1959. when he joined First Bank
ting committee,
Austin, Minn. He was promoted to
has announced
vice president-commercial loans in
that the commit­
1968. He has been president of First
tee has unani­
Bank Willmar since 1975.
mously agreed on
nominees for the
Association’s of­
Promoted at Langdon
ficer positions in
Recent action taken by the board of
1981-82. During
the NDBA annual meeting in Fargo Petersen, Lakeside State Bank, New directors of the First Bank of
Langdon resulted in the following
on May 19, 1981, the nominating Town.
promotions, according to an an­
committee will propose the following
will automatically be assumed by nouncement by D.M. Mason,
candidates for election by the general current president-elect Thomas A. president:
DeLynn Carlson is promoted to
membership: For president-elect- Roney, F oster County Bank,
insurance officer and will become a
John M. McGinley, American State Carrington.
full time soliciting agent.

North Dakota


Schreder Elected Grand Forks President
HE BOARD of directors of First
Bank Grand Forks has elected
Francis M. Schreder president and

chief executive officer of First Bank
Worthington since 1976.

m anaging offi­
cer. Mr. Schreder
has most recent­
ly served as pres­
ident and chief
executive officer
of First Bank
Worthington. He
succeeds William
L. Connelly.
Mr. Schreder
has been associ­ F.M.SCHREDER
ated with First Bank System
affiliates since 1957, when he joined
First Bank Rolla as a loan officer and
manager of the timepay department.
He was promoted to assistant cashier
in 1958, assistant vice president in
1963, and to vice president in 1966. In
1968, he was elected president and
managing officer of the bank. Mr.
Schreder has served as president and

Elected at Bismarck
Richard L. Klein has been elected
vice president and manager of retail
banking for First
Bank of B is­
marck, according
to Robert E.
Westbee, presi­
Mr. Klein be­
gan his banking
career with First
Bank System in
1957 at F irst
Bank Aberdeen,
S.D., as an adjustor. In 1958 he was
transferred to First Bank Austin,
Minn., as an assistant cashier. In
1963, Mr. Klein was transferred to
First Bank Virginia, Minn., as a vice
Federal Reserve Bank of St. Louis



Kenley E. Johnson has been
elected loan officer and will be
working in the agricultural depart­
ment as well as other loan areas. Mr.
Johnson is a graduate of the
University of North Dakota
Elected at Valley City
Stanley O. Johnson was elected
assistant vice president of the
Northwestern National Bank of
Valley City by the board of directors
as announced by K. B. Cummings,
Mr. Johnson has been with the
Northwestern National Bank over
eleven years.
Northwestern Banker, January, 1981

"See this button? What it says sets us
apart from all those other banks.
It has nothing to do with our looks.
Or our clothes. It shows up in the way
we do our jobs. The extra care and
attention we give you and your needs.
Federal Reserve Bank of St. Louis

"It's our commitment to serve you
better that shows up in countless little
ways. Whether we're maki ng loans to
buy banks. Or participating with you on
loans to your customers. Or helping
to manage your liquidity through
federal fund transactions or check
collection. Or sharing our expertise on
things like ATM s and VISA® Or a
variety of services, such as EEO plans
for human resources. Or municipal leasing.

"If you're a bank not currently working
with us, we invite you to call.
You'll discover, like our hundreds of
other banking friends, that we have a
genuine interest in correspondent banking.

"And you'll find out that better
banking is a lot more than just a slogan
on a button"

of Denver

The Better Bankers.
1515 Arapahoe Street/ P.O. Box 5548T.A.
Denver, Colorado 80292 / (303) 893-3456
Federal Reserve Bank of St. Louis

The Better Bankers is a service mark
of Central Bank of Denver.



Promoted in Billings
Charles Collins has been promoted
to personal banking officer at
Security Bank, N.A., Billings. He
started with Security Bank in
February 1979 as an account adjustor
and was transferred to instalment
loan department in May 1979. Mr.
Collins graduated from Eastern
Montana College.

J. B. Wallander, pres., Froid
J. T. Cadby, exec, v.p., Helena


Bank of Montana System in Top 100
ANK of Montana System, a
multi-bank holding company
headquartered in Great Falls is

Montana-based bank holding com­
pany with fifteen affiliate banks in
fourteen Montana communities.

included for 1980 in the top 100
publicly-held companies within the
ninth Federal Reserve District,
according to Charles W. Rubie,
chairman and chief executive of Bank
of Montana System. The rating was
published by Corporate Report, a
business magazine whose circulation
is in the upper midwest.
To qualify for the Corporate
Report’s 1980 Top 100 Performing
Companies, each company had to
obtain sales of $24.6 million or more
and be located in Minnesota, North
Dakota, South Dakota, Montana,
Western Wisconsin or the upper
peninsula of Michigan.
Montana Power is the only other
public company in Montana in the
1980 group. Bank of Montana
System ranked 96th in the group and
it is the first time it has been included
in the Corporate Report’s 100 Top
Bank of Montana System is a

Joins Western Bank
The Western Bank of Billings
recently announced that George L.
B a lb a c k h a s
joined the staff
as president and
was elected to the
board of direc­
tors. Mr. Bal­
back was former­
ly a ss o c ia te d
with First Citi­
zens Bank, Miles
City, First Bank
System , Boze­
man, and Security N.A., Billings. He
is a graduate of Montana State
University with degrees in agricul­
ture, business and economics.

Ag Conference Feb. 12-14
The Montana Bankers Association
is holding its 32nd Agricultural
Bankers Conference February 12-14
at the Holiday Inn in Bozeman.
Speakers will include Dr. William
Tietz, president, Montana State
University; Les Graham, Montana
Department of Livestock; Dr. P.J.
Hill and Dr. Terry Anderson,
Department of Economics and Ag
Economics, and Dr. James Welsh,
Dean, College of Agriculture, Mon­
tana State University.
W orkshops chaired by Dean
Simons will be held Thursday,
February 12.
These sessions are designed for the
education and review of loan officers’
techniques and procedures.

Banker, January, 1981
Federal Reserve Bank of St. Louis

Elected at Helena
Thomas J. Carruthers has been
elected vice president and manager of
the timepay department in First
Bank Helena, according to Earl W.
Johnson, president. Presently he
serves as vice president and manager
of the timepay department, the real
estate department and personal
banking center in F irst Bank
Mr. C arruthers attended the
University of Montana in Missoula,
majoring in business. He is a
graduate of the Pacific Coast School
of Banking in Seattle and the
National Instalment Banking School
in Boulder, Colo.
He began his employment with
First Bank Livingston in 1965 and
joined First Bank Lewistown in
November 1967, and was elected vice
president of that bank in January

N.A. Lopez Retires
N.A. (Nick) Lopez, senior vice
president, has retired after 27 years
with First Bank
Miles City. Mr.
Lopez term in­
ated his 43 year
banking career
D ecem ber 31.
Starting in bank­
ing as a book­
keeper in his
home town of
L iv in g s to n in
1937, Mr. Lopez
became auditor of the First National
Park Bank in 1947. In 1950 he
transferred to First National Bank in
Helena, where he was assistant
manager. In 1954 he came to Miles
City as assistant vice president of
First National Bank, and in 1958 was
elected vice president. In 1976 Mr.
Lopez was elected senior vice
president, the title he held at
retirement. He has also served many
years as secretary to the board of
Mr. Lopez is a graduate of the
Graduate School of Banking in
Madison, Wis., and attended other
extension banking seminars and
schools over his career. He was a
president of Group II Montana
Bankers Association.

Promoted at Havre
The board of directors of First
Bank Havre announced the promo­
tion of Randy Smith to the position of
assistant vice president and manager
of the agricultural loan department.
Mr. Smith has been employed with
First Bank Havre since October 1978
in the ag department. In November
1979 he was promoted to agricultural
loan officer, and in July 1980 to
manager of the agricultural loan


Vice Presidents Elected
The board of directors at Colorado
National Bank recently announced
the promotions of Jon L. Clark,
David W. Fowler and Lester L.
Hawley to vice presidents.
Mr. Clark began his career at
Colorado National Bank in 1971 as an
J. J. O’Dell, pres., Brighton
instalment loan
D. A. Childears, exec, mgr., Denver
He next moved
to the credit de­
p a r t m e n t and
Denver National Opens New Headquarters
then to the cor­
ENVER National Bank, one of bank customers, civic leaders and respondent ban­
Denver Mayor William McNichols. king area of the
the six largest commercial banks
in downtown Denver, has moved its Theme of the grand opening was “A regional division.
main offices to the new Denver New Beginning in an Historic Place, ” Mr. Clark atten­
National Bank Plaza at 17th and and the event was given an old-time ded the Univer­
flavor reflecting the heritage of the sity of Nebraska
Lawrence Streets.
The bank occupies the first four area where the bank is now located. and the University of Colorado.
Mr. Fowler joined Colorado
The historic site at 17th and
levels of the $40 million high-rise
Bank in 1972 as a credit
office center located in the Skyline
Urban Renewal area of lower cottage of George W. Clayton, a analyst. From that position he moved
downtown. A seven-lane motor bank pioneer Denver m erchant and to commercial loans and then to the
• adjoins the facility, and underground member of the first city council. It correspondent banking area of the
also was the site of the original regional division. Mr. Fowler gradu­
parking is available for 500 cars.
A series of special events to Denver Branch of the Federal ated from Farleigh Dickinson Univer­
sity where he majored in accounting.
celebrate the opening of Denver Reserve Bank of Kansas City.
National’s headquarters was cli# maxed by formal dedication ceremo­ renewal area are undergoing dramatic
nies on November 23, attended by revitalization reflecting the healthy
growth of Denver,” said C. Gale
Sellens, chairman and chief executive
officer. “Denver National is proud to
occupy this historic location and be a
part of the urban renaissance.”
The bank was chartered as
Security National Bank on October
10, 1963, and last year changed its
name to Denver National Bank. The
Mr. Hawley began working at a
office and motor bank at 16th and
Glenarm will continue operation as a Colorado National Bankshares, Inc.
detached facility, according to Mr. subsidiary, Northeast Colorado Na­
tional Bank, in 1965 as a loan clerk.
A member of Affiliated Bank- In 1979 he joined Colorado National
shares of Colorado, Inc., the Denver Bank as an assistant vice president in
National Bank has grown from a staff commercial loans.
of four officers and seven employes to
32 officers and 102 employes. As of Bob Lee Named President,
September 30, 1980, the bank listed
assets of $227,531,127 and deposits First National Denver
Robert E. Lee will join the First
of $199,261,264.
Affiliated Bankshares, a Boulder- National Bank of Denver within a few
based holding company, operates 18 weeks to become president and chief
H— 1
other banks in Denver, Loveland, executive officer, it was announced
Greeley, Colorado by Theodore D. Brown, chairman and
PRESIDING at opening ceremonies cele­ Fort Collins,
chief executive officer. Mr. Lee will be
brating Denver National Bank’s new main
Springs and Boulder.
offices wasC. GaleSellens (right), chmn. &
L.C. Fulenwider Inc., and Petry- a director of the bank as well as First
c.e.o., pictured with Samuel D. Addoms,
National Bancorporation and will
||| pres, of the bank. The new headquarters are Vappi Construction Co., both of
Denver, developed the Denver serve on the executive committee of
located in the Denver National Bank Plaza,
National Bank Plaza with the both institutions. He is currently
a$40 m illion high-rise office center at 17th
and Lawrence Sts. The corner was the
national firm of Skidmore, Owings president and chief executive officer
location of the frame cottage of pioneer
and Merrill as architects. Cushman & of the Iowa-Des Moines National
Denver merchant George W. Clayton, and
l||| later housed the original site of the Fed’s Chaffin as space planners and interior Bank in Des Moines, la., the largest
designers for Denver National Bank. bank in the state.
Denver branch.


Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981


Specialists in
fulfilling your every
correspondent need...
Vice President

Vice President

Vice President

Assistant Vice President

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, F.D.I.C.

Banker, January, 1981
Federal Reserve Bank of St. Louis


ted. The permanent facility is
scheduled for completion in early
spring 1981.
Mr. Palmersheim previously was
employed by Dakota County State
Bank in South Sioux City and First
National Bank in Ottumwa, la.

J. E. Roe, pres., Bennington

Changes at Campbell
Bonita J. Peterson has been elected
president of the Campbell State Bank
in Campbell. She succeeds her
Omaha National Bank and TMS Corporation husband, William C. Peterson, who
will continue as vice president of the
To Share Electronic Banking Terminais
bank while on leave to attend
^ T HE Omaha National Bank and its Bank-In-A-Billfold service since Creighton University Law School in
I TMS Corporation have reached 1975. The Money Service terminals Omaha, where he is in his first year of
an agreement to share 55 TMS made national financial news in 1974 studies. Mrs. Peterson has been with
Corporation electronic banking ter­ as the first off-premise electronic the bank for five years, serving as
minals in cities across Nebraska, banking terminals in the country, secretary of the board of directors and
0 officials of both firms said in a recent and were dubbed the “Hinky Dinky managing the insurance department.
Experiment,” after the stores where
joint announcement.
These terminals are in addition to the first terminals predominated.
Appointed at Bloomfield
the 25 term inals th a t Omaha
The board of directors of Farmers
National and TMS Corporation now
& M erchants S tate Bank of
4|| share in the metropolitan Omaha. Siouxland Banks Opens
The two major cards used at the
Siouxland National Bank, South Bloomfield has appointed Mrs. Elva
terminals are the Bank-In-A-Billfold Sioux City, held its opening ceremo­ DeLaRoi assistant cashier.
card originated by Omaha National nies re c e n tly .
and now offered by eight Nebraska F.J. (Fran) PalBreta N. Green Dies
O banks, and The Money Service Card mersheim, presi­
Mrs. Breta N. Green, wife of J.
offered through TMS Corporation dent of the new
Green, chairman of the board
bank, said the
of W auneta Falls Bank, died
Customers holding these cards Comptroller of
recently. Mrs. Green had been
have the added convenience of being th e C u rre n c y ,
associated with the bank for many
O able to make deposits and withdraw­ Washington D.
years as cashier and currently was a
als from their accounts seven days a C., issued the
week at merchant locations near n a tio n a l b a n k
She is survived by her husband and
where they live, work or shop, or charter to Sioux­
John M. Green, president of
while traveling around the state.
lan d N a tio n a l
® In addition to Omaha National, Bank to commence operations on the bank.
banks offering the Bank-In-A-Bill- December 1st. Siouxland National is
fold card are the American National the only national bank in Dakota NBA Convention Slated
Bank, Ames Bank, Omaha State County.
Bank and Southwest Bank in Omaha,
The new bank is capitalized at For Lincoln, May 7-9
# the Commercial National Bank in $1,250,000 and is owned by 200 area
The Nebraska Bankers Associa­
Grand Island, First National Bank of individuals.
tion annual convention is scheduled
Bellevue, Gering National Bank and
The officers, in addition to Mr. for Thursday, Friday and Saturday,
Ralston Bank. Customers of these Palmersheim, are Robert K. Lynch, May 7, 8 and 9 in Lincoln. All
banks will be able to use their vice-president, and Garnet Blanken- sessions will be held at Pershing
® Bank-In-A-Billfold card at any burg, operations officer. Those Memorial Auditorium, where con­
merchant location across the state.
serving on the board of directors vention displays again will have
The Bank-In-A-Billfold service include Norm Christiansen, Pender; special space. A golf tourney will
will be phased in at the various Dorothy Holstein, Winnebago, and start at 1:00 p.m. Thursday. The
outstate terminals over a period of Dee Engel, Leo Eriksen, Keith executive council and NETS board
® several weeks which began in Ferris, Norma G raves, Lonnie will meet Friday morning, followed
December. When the phase-in is Slaughter, Dr. Jerry Smith, Bill by a general business session that
complete, there will be shared Stone, Dr. James Walston, Mr. afternoon and a banquet and
term inals in Lincoln, Frem ont, Lynch and Mr. Palmersheim, all of entertainment Friday evening. The
Wahoo, Blair, Waverly, Platts- South Sioux City. All of the board second business session will be held
® mouth, Nebraska City, Auburn, members are also organizers of the S aturday. The annual banquet
Saturday evening will feature the Tex
Crete, Beatrice, Kearney, Hastings, new bank.
The Bank will operate in a Beneke Orchestra for entertainment
Holdrege, York, Seward, McCook,
North Platte, Norfolk, Columbus, temporary facility at 39th & Dakota and dancing, complemented with
— Schuyler and Alliance.
Avenue, until the permanent facility, another musical group that will play
Omaha National has been offering now under construction, is comple- during intermissions.
R. M. Beverage, exec, v.p., Lincoln
Federal Reserve Bank of St. Louis

Northwestern Banker. January. 1981


OHN M. Shonsey, chairman of
the board of directors of Ameri­
can National Bank, announced

Nebraska State Bank in July, 1980.
She was previously employed by the
Elba State Bank.

the election of Dennis M. Monaghan
to the bank’s board, and Selmer M.
“Sel” Dahl as new bank vice
president and commercial loan

* * *



Vice president-sales and marketing
of the Lozier Corporation of Omaha,
Mr. Monaghan is also a member of
the board of directors of Erickson
Display, Inc., of Des Moines. An
Omaha native, he joined Lozier in
1961, holding several production and
marketing posts leading to his
present position. He has an associate
degree from the University of
Nebraska at Omaha.
Mr. Dahl joins the bank from
Plainview, Neb., where, for the past
seven years, he operated his own
accounting and tax service. Prior to
opening his own firm, he was
involved in banking and real estate in
the midwest for nine years, including
in Omaha. A graduate of Augustana
College, Sioux Falls, S.D., he earned
his bachelor’s degree in business
administration and accounting.

The election of John R. Miller to
second vice president and commer­
cial loan officer at
th e
U n ite d
States National
Bank of Omaha
has been announ­
ced by chairman
and chief execu­
tive officer Don­
ald J. Murphy.
Mr. Miller has
joined the U.S.
N ational staff
after six years with Northwestern
National Bank of Omaha, where he
most recently served as vice
president of commercial loans.
Mr. Miller attended Missouri
Southern College in Joplin, Mo. and
the University of Nebraska at
Omaha, graduating with a bachelor’s
degree in political science. In 1974, he
earned a master’s degree in public
administration from UNO.

Cascade Data Markets
Micro Computer System
Cascade Data, Inc., Grand Rapids,
Mich., announced last month the
release of its Bank Information
Management System in what has
been for the firm a record year in the
production of vertical industry
software packages.
Cascade, which has operated as a
subsidiary of Dash Industries, Inc.,
since its merger in 1979, has been
* * *
designing and manufacturing busi­
David C. Applegate, president, ness computers since 1969. Last fall,
Nebraska State Bank, has announced the firm announced it would enter the
Cheryl K. Jacobsen has been named retail computer market by mid-1981
an assistant vice president and with software it has developed for
facility manager. She joined the small businesses.

Banker, January, 1981
Federal Reserve Bank of St. Louis

The new Bank Information Man­
agement System is designed for small
to medium sized banks handling less
than 10,000 transactions per day. It
includes proof of deposit, demand
deposit, savings, CDs, loans, mort­
gages, payroll and general ledger. It
also has memo posting and inquiry
capabilities. Special features include
• Cascade D ata Concept III
computer system, 10MB of 20 MB of
disk storage, a printer and two video
display units. Up to 24 video display
units may be attached to the system.
An optional 11-pocket MICR sorter
may be connected in order to capture
data via MCR encoding, rather than
through manual entry.
• Totally integrated from point of
proof entry. It incorporates proof and
posting functions in a single piece of
equipment. Proof items are automati­
cally separated and disbursed to all
applications, including the daily
statement. Deposits are proofed,
rough-sorted and automatically pos­
ted while the documents are handled
only once.
The entire BIMS (hardware and
software) can usually be purchased
for about the same price as a large
40-pocket MICR sorter, depending
on bank size and hardware require­
ments. All of the software applica­
tions in the system may be purchased
for $12,500, and the inquiry
capabilities for $2,000.
• BIMS offers same-day repor­
ting. Total information management
provides small to medium sized
banks the autonomy they desire, with
total management in a singe-entry,
convenient, low-cost, proof of deposit
computer system.

Wallgren to Direct
ABA Trust Division
Robert A. Wallgren is the new
director of the Trust Division of the
American Bankers Association, as­
suming responsibilities for the ABA
division serving the 4,000 member
banks with trust powers.
Mr. Wallgren’s selection was an­
nounced by Donald E. Stevens, exec­
utive director, ABA Banking Pro­
fessions, who pointed out that Mr.
Wallgren is a familiar face to many
trust bankers who have known him
during his 17 years with the Federal
Reserve. He has been a frequent par­
ticipant in ABA Trust Conferences
and other association meetings.

Jim Flodine, George McFadden, Fred Kuehl, Don Ostrand, Ralph Peterson.

Itust your correspondent
* banking to our efficiency experts.


These superb professionals are d ed icated
to meeting all your m
individual corres- ■
pondent needs. Call
us for details on electronic d a ta processing,


cash letter processing,
overlines, fed fund
transactions; or any
■ other correspondent
M service. We’ll show
you how friendly effic ie n c y c a n b e .

firstnational bank
of omaha


In Nebraska call us toll free at 800-642-9907 Outside Nebraska call us toll free at
800-228-9533 Member FDIC.
Federal Reserve Bank of St. Louis


ers association seminars subsequent
to the four regional meetings. The II
Program Development Committee of
ABA’s State Association Division is
currently working with the Bank
Card Division on this joint program.

board of directors of First
National Lincoln Corp. voted to

Lewis G. Odom Retires
Comptroller of the Currency John
G. Heimann has announced the
retirement of Senior Deputy Comp- •
troller Lewis G. Odom Jr. from
federal government service. Mr.
Odom has served as a member of the
Policy Group of the Office.

continuing growth of the corpora­ First Chicago Offers
tion’s wholly-owned subsidiaries, Precious Metals Program
increase the cash dividend to be paid First National Bank & Trust Co. of
First Chicago’s highly successful ®i
to shareholders for the quarter ending Lincoln and First Savings Co. of
Precious Metals Passbook Program
December 31, 1980, to 35 cents per Lincoln.
prompted The First National Bank of
share. Representing a 12.9% increase
* * *
Chicago to begin offering financial in­
over the 31 cent dividend that has
been paid for the past four quarters,
The board of directors of Citizens stitutions a prototype plan, accord­
the 35 cents per share dividend will be State Bank has announced the ing to Patrick Hurley, vice president <§
paid on January 2, 1981, to election of Susan L. Green as and product manager.
The convenient investment pro­
shareholders of record as of December assistant cashier, loan administra­
duct enables a participating institu­
19, 1980.
In making the announcement,
An Omaha native, Ms. Green has tion to sell both gold and silver to cus­
William C. Smith, president, noted been associated with Citizens since tomers under its own name. The pro- <§
the action by the directors to increase 1976 and has held positions in the gram is structured so that a partici­
the dividend was based on the current customer service and loan depart­ pant need never take delivery of the
metals, thereby eliminating storage
and projected earnings and the ments.
and security problems, as well as
minting and assaying costs.
ABA Seminars Will Help Banks
stitutions to structure their precious
Implement Truth-in-Lending Changes
metals sales in keeping with their
organization’s marketing guidelines.
ELPING banks prepare for April 1,1981, with an effective date of Some organizations, for example, ®
implementation of significant April 1, 1982.
may want to pattern their sales after
changes affecting consumer lending
Panelists at the two-day regional First National’s passbook plan while
is the object of four Truth-in-Lending seminars will be federal regulators, others may opt for statements of
(Reg Z) seminars to be offered next bankers and attorneys with compli­ ownership. Each financial institution
June by the Bank Card and ance expertise. A Reg Z seminar sets its own commission schedule for ^
Instalment Lending Divisions of the manual, focusing on the changes in purchases and withdrawals.
American Bankers Association.
the law and containing checklists and
The agent receives a guaranteed
The revisions authorized by the sample forms to aid compliance, will price for the customer over the tele­
Turth-in-Lending Simplification Act be provided to seminar participants. phone. When an order is placed,
will require changes in virtually every In addition, a new, revised edition of bullion is purchased and stored by •
consumer lending form that contains the ABA’s Comprehensive Regula­ First National; all orders are covered
credit disclosures—both open and tion Z Compliance Manual will be 100% with actual product. The pro­
closed-end credit. Banks are encour­ available by mid-year.
gram allows financial institutions to
aged to take immediate steps by
The four Reg Z seminars are take advantage of competitive prices
inventorying all forms that will be scheduled for June 1-2 in Philadel­ made possible by the bank’s big- ®
affected and controlling the reorder­ phia, June 4-5 in Chicago, June 15-16 volume transactions.
ing of such forms carefully to avoid in Dallas and June 18-19 in Denver.
Participants in the program have
excessive supplies.
For additional details, contact Mike the option of using a merchandising
The ABA Reg Z seminars will Stoll, assistant director, Bank Card kit from First National that includes: ^
provide specific techniques for Division, American Bankers Associ­ consumer ad mats, consumer bro- ^
implementing the changes in the law, ation, 1120 Connecticut Avenue, chure, statement stuffer, point-ofin addition to helping bank lending NW, Washington, DC, 20036, or call sales posters, a 60-second radio com­
officers and compliance officers (202) 467-4863.
mercial script and sample consumer
understand the effects of the new
Plans are also being formulated to press release. In addition, the bank ^
regulations expected to be issued by offer co-sponsored ABA/state bank- will help train agents’ personnel.


Banker, January, 1981
Federal Reserve Bank of St. Louis


Consistent Leadership.
Today, we see a period of rapid
change in the financial environment.
These changes are spurred by govern­
ment regulation and deregulation, our
roller-coaster economy, and the need
to be extremely competitive.
It’s a challenge that is most sucessfully
met by a bank that offers consistent
leadership. These NBC bankers offer
the experience of 75 years of
combined length of service. 65 of
those years are with National Bank of
Commerce. These bankers and their
team of experienced professionals
provide the necessary continuity at
They share a dedication to high
performance banking in every service
that NBC offers.
Call them. They’re eager to share their
experience and enthusiasm for the

Wilbur Baack, Senior Vice Presidenti;
Jim Nissen, Presidenti;
Tom Potter, Senior Executive Vice President.


National B ank of Commerce
The B an k w ith the Plus
NBC Center, 13th & O St., Lincoln, NE 68508
Telephone (402) 472-4321, WATS 800-742-7317
Accounts Insured to $100,000
Federal Reserve Bank of St. Louis

Northwastam Bankar, January. 1981


Grow w ith a
Ben Eilders, Senior Vice President
Correspondent Banking Department

Ben Eilders and our Bankers Trust
correspondent bankers are ready to help you
with your growing responsibilities.
The Bankers’ Bankers welcome the opportunity
to provide the correspondent services you
need — overlines and loan participations, wire
transfers, data processing and trust services.
And we can give you immediate, authori­
tative answers to your questions.
You’ll be pleased with
the service you receive
from our expanded
correspondent bank­
ing department.
We’re growing!
Come grow with us.

B ankersÈ
“"» T ru s t | l
Correspondent Bank Department
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line:
Des Moines’ largest locally
owned, independent bank

Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

insurance company is obligated to
deliver tax-deferred funds later in
accordance with contract terms.


E. L. Tubbs, pres., Maquoketa
M Milner, exec, v.p., Des Moines

Iowa Banks Are Now Offering Approved
IDEA Annuity to Attract New Deposits







I OWA banks will be able to offer the
I IDEA Annuity contract to their
customers as soon as an employe is
licensed for this activity by the state
insurance department and as soon as
materials are received from the Iowa
Bankers Insurance & Services office
in Des Moines. IBIS created the new
product in conjunction with Ameri­
can Republic Insurance Company of
Des Moines.
The annuity offers depositors, in
amounts ranging from $10,000 to
$250,000, a new instrument for
accumulating tax deferred income.
For the bank depositor, IDEA
Annuity, reports IBIS, will offer the
1. Tax deferred accrual.
2. Safety.
3. Guaranteed interest.
4. Valuable collateral.
5. Probate free.
6. Guaranteed income for life.
7. Emergency withdrawal privi­
8. Tax-favored retirement income.
9. Multiple pay-out options.
10. Flexible financial planning tool.
A1 Tinder, managing officer of
IBIS, states that payment options
need not be selected by the bank
customer until the pay-out period
begins, and that can be postponed
until age 85, with many options
IBIS currently has nearly 300 Iowa
banks participating in the IDEA
Annuity contract program. Workshops were held last month to
acquaint bankers with the necessary
details for handling the product. Life
licensing schools also have begun so
that each bank may commence
offering the product as soon as at
least one employe is licensed to sell
the annuity to customers. For the
bank, IBIS lists six advantages
accruing to the annuity, stating it
1. Attract new deposits.
Federal Reserve Bank of St. Louis


Sioux City Banks Name
Clearing House Officers
Richard C. Taylor, president of the
First National Bank in Sioux City,
has been elected
president of the
Sioux City Clear­
ing House Asso­
ciation by mem­
ber banks in that
city. He succeeds
R.E. Gene Hag­
en, president of
Security Nation­
al Bank. Named
vice president is
Leslie H. Olson, president of the Toy
N ational Bank. Bunny Traver,
secretary to Mr. Taylor at First
National, will be secretary of the
The Sioux City Clearings House
traditionally is host to Group 1
bankers at their meeting in Sioux
City. That meeting is scheduled for
February 13-14.

Increase deposit retention.
Expand depository base.
Open new avenues for service.
Strengthen bank-customer rela­
6. Increase bank revenues.
Neil Milner, executive vice presi­
dent of the Iowa Bankers Associa­
tion, said, “We feel that we have
structured the best possible product;
one that will add an entirely new
dimension to the full service
capabilities of participating banks.
The staffs of IBIS, American
Republic and the IBA are to be
commended on their fine work in
producing this valuable competitive
Seminars to Begin Jan. 19
tool for Iowa’s banks.’’
To assist Iowa’s banks in making
the best possible sales presentation to
A True Annuity
the public, the Iowa Junior Bankers
The IDEA Annuity contract was Association is offering “A New
developed in response to a similar Twist-Turning Prospects Into Cus­
product offered last year for the first tomers.” This series of 12 informa­
time by Iowa savings and loan tional dinner/seminars will feature
institu tio n s. Subsequently, th a t the expertise of Financial Shares
product, as predicted by IBA and Corporation, one of the nation’s
IBIS attorneys, was declared non­ leading financial marketing and
qualified by the Internal Revenue training firms.
All of the 1981 Bank Staff Training
Service. IBIS and IBA continued to
develop the new product now being Seminars will open with registration
offered with a view to writing the at 5:30, followed by dinner at 6 p.m.
contract in the necessary way to The 2Vi hour seminars will begin
promptly at 7:00. The fee is $26 per
conform to IRS requirements.
In the case of the savings and person.
The seminar locations are: January
loans, the product was wrapped
around an existing CD owned by the 19, Ottumwa, Ottumwa Country
depositor. IRS ruled that since the Club; January 20, Cedar Rapids,
CD owner could in fact control the Stouffer’s; January 21, Des Moines,
investment of that money, it was not Hyatt; January 22, Council Bluffs,
a true annuity and, therefore, not Best Western; January 26, Fort
Madison, Holiday Inn; January 27,
permissible for tax deferral.
The IDEA Annuity, on the other Davenport, Black Hawk; January
hand, is a premium purchase from 28, Dubuque, Midway Motor Lodge;
American Republic of an annuity. January 29, Waterloo, Conway Civic
American Republic keeps the funds Center; February 9, Sioux City,
invested in CDs in the bank, but at Hilton; February 10, Emmetsburg,
that point the investment contract is Iowa Lakes Community College;
between the company and the bank. February 11, Fort Dodge, Starlite
The customer has an approved Village, and February 12, Mason
annuity contract for which the City, Holiday Inn.
Northwestern Banker, January, 1981


Iowa News

commercial loan officer. He has been
with Clay County National Bank
since April 1974.
Steve Charlson has moved from
instalment loan officer to manager of
instalment loan department. He has
been with Clay County National
Bank since April 1978.
Candi Whittenburg has moved
from her secretarial position to
a ssistan t loan officer
in the
instalment loan department. She has
been with Clay County National
Bank since July 1973.

Bob Lee to Leave lowa-Des Moines
OBERT E. Lee, president and
chief executive officer of the

Bancorporation, Colorado’s largest
bank holding company with 13
affiliates. Mr. Lee will be on the
Moines National
boards of directors and executive
Bank, will be
committees of both corporations.
resigning within
“Certainly my leaving will pose no
a few weeks to
problems for the lowa-Des Moines,”
become president
Lee continued. “We have a very
and chief execu­
sound, very talented management
tive officer of the
team and the bank will be in good
F irst N ational
hands. As for my successor, that
Bank of Denver,
choice will be made by our board of
according to an
directors and the management of
Northwest Bancorporation, with a
from Robert L. Sandblom, chairman decision to be made during my period Joins Hills Bank
of the lowa-Des Moines’ executive of transition.”
Gordon Hinz has joined the Hills
committee of its board of directors.
Bank & Trust Co. as a vice president.
“Speaking for our board and the Promotions Announced
Mr. Hinz has
entire senior management of North­
west Bancorporation, we accept Bob
Lee’s decision with extreme regret,” Clay County National Bank of with the Media Mr. Sandblom said. “Everyone Spencer, has announced the following polis S a v in g s
associated with the lowa-Des Moines promotions and changes of per­ Bank for the past
11 years and
has come to appreciate Bob Lee’s sonnel:
David Woodcock has been promo­ prior to that he
talents and leadership; it’s easy to see
why another bank would work so ted to cashier. Mr. Woodcock moves was an eastern
to his new position from the Iowa farm loan
hard to get him.”
Mr. Lee will head the oldest bank commercial loan department.
Tom Malmgren has moved from with Metropoli­
west of the Mississippi and one twice
the size of the lowa-Des Moines. It is vice president instalm ent loan tan Life Insur­
also the lead bank of First National

u n i v u

Of Sioux City
An Affiliate of Northwest Bancorporation


Banker, January, 1981
Federal Reserve Bank of St. Louis


B an co

Over 150 Iowa financial
institutions have used
Kirk Gross Co. services!
Do they know something
you don’t?
Kirk Gross Co. has a solid reputation in Iowa
for designing new financial institutions and
remodeling present ones. If you are thinking
about a new facility, put the responsibility and
worrying in the hands of the TURN KEY
professionals. We keep up on the latest ideas
on planning, designing, construction and
furnishings. That’s why we have completed
more than 150 projects since 1971. The best
part of this unequaled record is that so many
are repeat, satisfied customers. Let Kirk Gross
Co. explain how our complete TURN KEY
program will save you time and money.
Federal Reserve Bank of St. Louis

If you’d like to know what other bankers know
about Kirk Gross Co., call at your earliest op­
portunity. (How about right Now! Phone

4015 Alexandra Drive
P.O. Box 2097
Waterloo, Iowa 50704


Iowa News

Group 1 Bankers Meet February 13-14
IOUX City bankers anticipate
another registration of 800 or
more bankers and wives for the
annual Group 1 meeting scheduled
for their city February 13-14. As it
has been for several years, the
meeting will be conducted at the
Marina Inn in South Sioux City.
Presiding at the business meeting
will be Howard Logan, chairman of
Group 1 and president, First Trust &
Savings Bank, Moville. Assisting
him will be Harold Harms, secretary
of the group and president, First
State Bank, Brunsville, who is slated
to succeed Mr. Logan as chairman at
the bi-annual election during the





Hosting the Friday night reception
will be members of the Sioux City
Bankers Association. President of
that group this year and official host
is Richard C. Taylor, president of
First National Bank in Sioux City.
Principal guest speaker at the
business session will be Robert L.
Peterson, president of Iowa Beef
Processors, Inc., Dakota City, Nebr.
Other speakers are Edward L. Tubbs,
president of the Iowa Bankers
Association and president, Maquoketa State Bank; Neil Milner, IBA
executive vice president, Des
Moines, and Thomas H. Huston,
Iowa superintendent of banking. The
meeting will adjourn at 2:30 p.m.
Saturday, and will conclude that
evening with a banquet and
entertainment. The complete pro­
gram follows:
Friday, February 13
6:00 R egistration desk open —
Marina Inn.
8:00 Social hour and hors d’oeuvres,
courtesy Sioux City Bankers



welcomes you to
Iowa Bankers Group 1 Annual Meeting
February 13-14, Sioux City
Visit us in our hospitality room at
The Maid’s Quarters — Marina Inn

John Rasmussen

Glen Altfillisch


W ayne Kincaid

United States Check Book Company
1201 SO U T H 16TH S T R E E T - OM AHA. N E B R A SK A 6 8 1 0 8
In N e b r a s k a C all 4 0 2 - 3 4 5 - 3 1 6 2
O u t o f S t a t e C all W a ts L in e 1 - 8 0 0 - 2 2 8 - 9 2 4 6

Banker, January, 1981
Federal Reserve Bank of St. Louis

Saturday, February 14
9:00 Registration—Marina Inn.
Exhibits open on convention
11:30 Ladies Luncheon—Marina
Inn. Bus service available between the Hilton Inn and
Marina Inn.Style show,
courtesy of Younkers.
11:30 Delegates’ luncheon—Marina
P residing—Howard Logan,
chairman, Group 1.
Invocation—Rev. A.J. Wash­
ington, senior minister, First
United Methodist Church,
Sioux City.
Report of nominating commit­
tee and election of officers.
IBA Activities—Edward L.
Tubbs, president, Iowa Bankers Association.
Remarks—Neil Milner, execu­
tive vice president, Iowa
Bankers Association.
Remarks—Thomas H. Huston, Iowa superintendent of
“The Future of the Beef
Industry in the ’80s” —Robert
L. Peterson, president, Iowa
Beef Processors, Inc., Dakota
City, Nebr.
2:30 Adjournment.
6:30 Social Hour.
7:30 Banquet.
Entert ainment—Greg Spevak
Orchestra for your listening and
dancing pleasure.









New Directors Appointed
The board of directors of Mineola
State Bank has announced the
appointment of R.G. (Dick) Wood to
the board. Raymond Maaske was ®
elected chairman of the board and
L.F. Druse was appointed honorary
Dr. J.H . Atkinson Dies
Funeral services were recently held
for Dr. J.H . Atkinson, 63, one of the
original directors and chairman of the
board of the Community State Bank
of Rockwell. Dr. Leo Schmall has ®
been elected as chairman of the board
and Richard W. Ermer has been
elected director to fill the vacancy.


R egisters

'A c c e p te d , S ale R e g isters b y Bank
C lerks E v e ry w h e re ”
For in fo rm a tio n

wr i t e

Oakland, Iowa


“We are committed to
correspondent banking. Our
performance proves that
whether you need a specific
service, or just an idea or
two, First National is always
ready to help you.”
Richard C. Taylor, President

Gary Stevenson

Doug Schmidt

Vice President

Correspondent Officer

712/ 277-0618

712/ 277-0614

Choose one of our services or as many as you need:




You get an accurate, efficient system for
obtaining the best availability of your funds to
help increase the profitability of your bank.
You get a full range of loan services including
overline and liquidity loans, assistance with your
ag loans, commercial loans and others.

You get an entire department of Trust
professionals to assist you in meeting your
client’s needs.
You get the speed and efficiency of the Banks
of Iowa computers, plus the most successful
EFTS/Instant Access processor in the territory.

You get a total program for both Master
Charge and Visa that includes card issuing,
processing, corporate cards, account servicing
and assistance with merchant calls. And you get
the geographic advantages of being closer to
your Bank Card Center.

You get experienced help and fast action in
handling Federal funds transactions, money
transfers, security purchases and sales.


First National Bank


MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker January, 1981


Iowa News

One-Half Million Use Convenient Banking

administrative offices and computer
system are located alongside the | |
OR the first time in its 3 Vz -year state. Through the Switch, all offices of the Iowa Bankers
existence, over 500,000 consu­ participating Iowa banks are able to Association in Des Moines.
mer banking transactions have been “share” terminals deployed by their
made in one month through terminals banks to the benefit of all bank
Robert Starr Retires
connected to Iowa’s unique “Con­ customers.
presidentvenient Banking” system.
When the first-of-its-kind system
The announcement was made went into operation in 1977, the few instalment loans, retired from the
jointly by Iowa Bankers Association participating banks yielded only a Council Bluffs
executive vice president Neil Milner few thousand consumer transactions. Savings Bank re­
and Iowa Transfer System executive Since the end of that year, however, cently after a
director Dale Dooley following the the system has shown annual growth career spanning
release of figures for the month of nearly 100 percent. The Switch, 42 years. An
ending October 31, 1980. Total which has been located at the Iowa open house was
October transactions were set at Bankers Association offices in Des held to commer503,713, topping the previous high of Moines for nearly two years, ate his years of
processed 163,327 “shared” transac­ service to the
491,315 set in August.
Mr. Milner, who helped coordinate tions in January, 1980.
In addition to
“ This landm ark dem onstrates
the development of the system and its
bank duties,
enabling legislation prior to the start that, given a positive experience, the
of operations in February 1977, called general public will appreciate and Mr. Starr served as treasurer of the ®
the half-million figure “a significant even prefer electronic funds transfer Council Bluffs Community School
milestone,” adding that “this reflects as a safe and convenient medium of District for 20 years.
the substantial and growing accep­ exchange,” said Mr. Dooley. “Ul­
tance of electronic banking in Iowa by timately, this growing acceptance
will result in decreased cost and Join Bussey Staff
customer and banker alike.”
“ Convenient B anking” is an increased convenience for banks, and
Cliff Danner has joined the staff of
identifying name for all banking therefore for their customers.”
the State Bank of Bussey as assistant
The Iowa Transfer System is an vice president. He was formerly with
terminals connected to the Iowa
Transfer System’s Switch, a central independent corporation created to Community N ational Bank of 0
computer electronically tied to over provide electronic data processing Knoxville. Linda Furman has been
200 terminals and 85 banks across the services to its members. Its named cashier.


Joins West Liberty Bank
Joins Drake Staff
Ricci Aquilani has joined the West
Robert H. Clark, Jr., has resigned
Liberty State Bank as cashier, as vice president and trust develop­
according to Robert T. Rehmke, ment officer at
Central National
Mr. Aquilani was a state bank Bank and Trust
examiner the past four years. He is a Company to be­
graduate of the University of come director of
Northern Iowa with a business planned giving
finance major.
for Drake Uni­
v e r s i t y , D es
Promoted at Council Bluffs
Moines. His new
Ed H. Spetman, chairman of the appointment was
board and president of Council Bluffs effective Decem­ R.H. CLARKE, JR.
ber 1.
Savings Bank,
Mr. Clark received his BA degree
announced the
from Drake in 1950 and his JD degree
p ro m o tio n of
from Drake Law School in 1953.
Emmet Tinley
III from acting
From 1964-68 he spent four years
auditor to audi­
in England helping to open and run a
tor. Mr. Tinley
new bank in Birm ingham for
was also recently
International Bank of Washington,
recognized as a
D.C. He joined Central National in
chartered bank
the commercial lending division in
auditor by Bank
1968 and was advanced to vice
president in 1969. In 1974 he was
Institute, the nation’s research and given the responsibility for opening
educational organization for the Central’s detached office in West Des
banking industry. He is a gradute of Moines. He managed that facility
Creighton University, Omaha.
until returning to the main bank a
Banker, Janaury, 1981
Federal Reserve Bank of St. Louis

year later to head the marketing and
public relations division. Mr. Clark’s
transfer to the trust department took
place in early 1978.
Named Cutty’s Treasurer
John T. Waters has resigned as
vice president and head of the instal­
ment lending de­
partment at Cen­
tr a l N a tio n a l
Bank & Trust
Company to ac­
c ep t a p p o in t­
ment as treasurer
of Cutty’s Inc.,
of Des Moines.
Cutty’s operates
fo u r
cam p­
grounds on a
membership basis in Colorado,
Indiana and Ohio, as well as Des
Mr. Waters joined Central Nation­
al in 1963 in the instalment lending
department. As part of the bank’s
management training program he
worked three years in the credit
department before returning in 1969
to the instalment lending depart­





An insurance company growth
chart. Not exactly the m ost interesting
thing to read.
Unless you’re an Iowa Banker’s
Insurance & Services customer.
Because being an IBIS customer
makes you a shareholder. So greater
growth brings you greater dividends.
From the sam e people who provide
you with expert help in designing
insurance programs tailored specifically





*Plus a o n e-tim e
tra n sfer o f
$ 140, 000.00
from ea r n in g s t o
IBBP reserv e fund.

to your bank’s needs — Bonds,
Property-Casualty, Directors’ & Officers’
Liability — Employee Benefit Programs
— Creditor Protection.
So who cares? Iowa banks like
For more information, call
5 1 5 -2 8 6 -4 3 0 0 . Or dial
1-800 -5 3 2 -1 4 2 3 toll-free. And find out
how much more we care about you.

4 3 0 Liberty Building, D es Moines, Iowa 5 0 3 0 8
Selling insurance protection just to banks.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1981


HE Federal Reserve has an­
nounced their approval of the
acquisition of Capital City State
Bank by Hawkeye Bancorporation.
The bank became the 25th affiliate
bank of Hawkeye.
The main bank is located at E . 5th
and Locust and has three offices. This
bank with assets of $95 million is the
second major bank in the Des Moines
area as it joins First Federal State
Bank as an affiliate of Hawkeye.
With the acquisition of Capital City,
Hawkeye will become a $1.1 billion
“It is the intention of Hawkeye to
operate both banks as separate
entities and not merge the institu­
tions,” stated Paul Dunlap, presi­
dent of Hawkeye. Mr. Dunlap also
said that Larry Wenzl, president of
First Federal State Bank, assumed
the presidency of Capital City
January 1. Prior to becoming
president of First Federal, Mr. Wenzl
was president of Clay County
National Bank, Spencer, also an
affiliate of Hawkeye. Charles Gustaveson, president of First National
Bank, Clinton, succeeded Mr. Wenzl
as president of First Federal. *
O ther acquisition plans were
announced recently by Hawkeye with
the filing of an application to the
Federal Reserve for Hawkeye to
acquire United State Bank, Cedar
Rapids. This bank has assets of $40
* * *
Duane D. Jensen has been elected
vice president and cashier of Brenton
National Bank of South Des Moines.
Mr. Jensen joined the bank in
October 1979, as assistant vice
president. He previously worked at
Banker, January, 1981
Federal Reserve Bank of St. Louis

the Warren County Brenton Bank in
Indianola from 1975 to 1979. He
worked for Des Moines Savings and
Loan Association and Plaza State
Bank in 1973 and 1974. He is a 1974
graduate of the Iowa School of
Banking, University of Iowa and has
his BA degree from University of
Northern Iowa.
* * *
Robert E. Lee, president and chief
executive officer of the Iowa-Des
Moines National
Bank announced
these personnel
changes follow­
ing the December
meeting of the
board of direc­
T hom as N.
Hammelman has
been elected sen­
ior vice president T.N. HAMMELMAN





and manager, BankCard Services.
He joined the Iowa-Des Moines inO
1979 as vice president of BankCard
services. Prior to joining the bank he
was with the Mercantile Bancorpora­
tion, St. Louis, Mo. as Manager of
Product Planning and Development, ®
David Elgena has been named
vice president and manager, card­
holder operations-BankCard Ser­
vices. He joined the bank in 1972 in
Retail Banking where he held several®
positions including managing officer
of the bank’s Euclid office before
joining BankCard Services. Prior to
joining the Iowa-Des Moines he was
the assistant cashier with the ®
Delaware National Bank.
William E. Clark will join the
Iowa-Des Moines as second vice
president and manager, BankCard
marketing. He has been with the U.S. ®
National Bank of Omaha since 1960
serving most recently as marketing
customer services officer - BankCard
Gary R. Rasmusson has been ®
elected group vice president, opera­
tions. He joined the bank in 1975 and
has held several positions in
operations. Prior to joining the
Iowa-Des Moines he was with ®
Northwestern National Bank of







A short guide
to choosing
a correspondent
Nearly every large
bank has a correspondent
banking departm ent.
So how do you
choose which bank
to do business with?


Talk to the people.

Find out how knowledgeable
they are. How professional. Make them
explain how their correspondent
banking department can help you.

Are they easy to deal with? They
should be. A correspondent banker and
his client need to work in harmony.
Check their reputation. Are they
dependable and reliable? All solid
relationships are built on trust. In a
banking relationship, trust is the most
important element.
Be certain that frequent com­
munication will be maintained between
the correspondent bank and your bank.
If one or both of you aren't aware and
well informed, there's bound to be
Of course, at Central National,
we think the people in our
correspondent banking department can
do the best job for you. But you be the
judge. Call us toll free, 1-800-362-1615.
Make an appointment. Then put us to
the test.

Left to Right: William B. Greaves, Vice Pres.; Margo Foxhoven, sec.; Raymond
Schneider, Corsp. Bk. Officer; Eddie A. Wolf, Sr. Vice Pres.; Jeannine Gathercole,
sec.; Cyrus D. Kirk, Vice Pres.

Wfe’r c determined to do the best for you.

“C ”

Central National Bank & Trust Com pany
Federal Reserve Bank of St. Louis


Minneapolis, an affiliate of North­
west Bancorporation.
Dennis R. Morrison has been
named vice president and controller.
He began with the Iowa-Des Moines
in 1979 as controller. Prior to joining
the Iowa-Des Moines Dennis was vice
president-tax administration with
the Mercantile Bancorporation, St.
Louis, Mo.
Voldemar Vanags has been elected
vice president, investment services.
He joined the Iowa-Des Moines in
1972 in the computer services area.
Since then he has served positions in
correspondent banking and most
recently, as second vice president,
investment services.
Michael Austin has been named
vice president, international bank­
ing. He joined the Iowa-Des Moines
in 1974 and has held various positions
in real estate, corporate services, and
most recently, international banking.
Prior to joining the bank he was with
the Security Pacific Bank in
Gary E. Giesler has been elected
vice president, commercial banking.
He joined the Iowa-Des Moines in
1977 and has held several positions in
the lending area. Prior to joining the
bank, he was with the Savana State
Bank, Savana, Illinois.
J. Lanier Little has been named
vice president, commercial banking.
He began with the bank in 1973 as an
intern. He has held several positions
in retail banking, and has served
most recently as second vice
president, commercial banking.
Michael R. Carver has been elected
vice president, retail banking. He
joined the bank as a management
trainee in 1965. He has held several
positions since, most recently as
second vice president, retail banking,
main bank.
N orthw est Computer Services
Company has named Thomas H. Feld
director of the Des Moines regional
center. He joined NCS in November,
1979 as manager of the Des Moines
* * *
Dave Reeves joined the Federal
Home Loan Bank Board of Des
Moines recently as director of
regional check processing centers.
This network in Des Moines,
Minneapolis, Kansas City and St.
Louis will process third party
payment transactions initiated by
savings and loans in the FHLBB’s
Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

Banks of Iowa Names Holmes Foster C.E.O.
ANKS of Iowa board of directors vice president, and Jan Burch®
has named Holmes Foster to personnel coordinator.
Decision to transfer the corporate
succeed F. Forbes Olberg as chief
to Des Moines and
executive officer. Mr. Olberg will
of the top leveL
continue to be active in the affairs of
ents w e r?
Banks of Iowa as chairman of the
board and chairman of the executive
committee. He will maintain his May. Banks of Iowa Computer
office in Cedar Rapids. Mr. Foster, Services, Inc., a wholly owned
president and chief operating officer, subsidiary, will continue to have its^
has moved his office to Des Moines headquarters in Cedar Rapids.
Mr. Olberg was elected executive
vice president in 1969, president and
chief executive officer in 1971 and
chairman in 1975. During that tim e^
Banks of Iowa has grown to become
the largest Iowa bank holding
company with assets in excess of
First step in the management^
succession program came in March
1979, Mr. Olberg said, when Mr.
Foster was named president and chief
operating officer. Prior to joining
where the corporate headquarters will Banks for the State of Iow a^
be located. Also moving to Des Previously, he was with the Federal
Moines are Tom Mecredy, assistant Reserve Bank of Chicago.
five-state area after that service
becomes authorized for members
banks January 1.
Mr. Reeves formerly was manager
of the Federal Reserve Bank’s
Regional Check Processing Center
Des Moines office before resigning to
accept the new post.
* * *


J. Locke Macomber, president and
chairman of the board of Valley
National Bank,
announced the
following elec­
tion of officers
and changes in
Will J. Hoekman has been
promoted to sen­
ior vice president
and will be re­
sponsible for the W.J. HOEKMAN
lending division. He had previously
been vice president in charge of the
trust division.
Verne C. Bates has been promoted
to vice president and trust officer and
will be responsible for the trust
division. He had previously been
trust officer/employe benefits and
was a pension specialist with the IRS.
Mark L. Hamilton has joined
Valley N ational Bank as vice
president/business development res­
ponsible for business development,






advertising, public relations and
other marketing activities. He had
previously been an officer with
Central National Bank. Mr. Hamil­
ton joined Valley Bank effective#
December 1, 1980.
Sandra B. Robinson has been
promoted to vice president/loan
administration where she will be
responsible for all lending operations.#
Ja n e tte Henderson has been
promoted to the manager/audit
department where she will be
responsible for all audit functions and
preparation of reports.


“T he D rovers D ifferen ce”
sta r ts h ere.

W i


w e s




T ô p

FLOOR -you can't


S ß -F T H F

o N W

n v

ö F T T H F R F

r f s i o

F P û M


When you correspond with
Drovers you have a direct
line to the full senior man­
agement team. Starting with
President Frank Bauder,
Sr. Executive Vice Presi­
dent Jim Carmody, and
Executive Vice President
Bob Corey.
They’re backed up by
some of the best corres­
pondent bankers in the
business. People like
John Crotty, Max Roy,
Andy Ruments and
Kathy Hardy.

* ' Tf
\ iv



Drovers people are “The Drovers
Difference.” They’re the reason
the bank’s correspondent
accounts have just about doubled
in under two years.
So if you’re looking for more
service with your services ...
Put us to the test! Just pick
up the phone and call Frank,
Jim, Bob, John, Max, Andy
or Kathy.
You deserve “The
Drovers Difference.”

Member Federal Reserve System

Drovers Bank of Chicago
47th Street & A sh lan d A venue, C hicago, IL 60609
Federal Reserve Bank of St. Louis

(312) 927-7000

Northwestern Banker, January, 1981


Iowa News

PARTICIPANTS in the 1981 Iowa Business Trends conference conducted by the lowa-Des
Moines National Bank last month were, left to right: Seated— Dr. Arthur B. Laffer,
professor of business economics, U. of So. Cal., Los Angeles; Robert E. Lee, president of
the host bank, and Robert L. Peterson, pres. & c.e.o., Iowa Beef Processors, Inc., Dakota
City, Nebr. Standing— Donald R. Sloan, dep. chmn., Peat, Marwick, Mitchell & Co., New
York; T.N. Payne, mgr., office systems mktg., IBM Corp., White Plains, N. Y., and Robert
M. Powers, pres., A.E. Staley Mfg. Co., Decatur, III.

At lowa-Des Moines Conference—

Business Leaders Outline Productivity,
Technological Challenges for 1980s
ERSUASIVE reasons for a tax
cut were voiced at the 1981 Iowa
Business Trends Conference by Dr.
Arthur B. Laffer, professor of
business economics at the University
of Southern California. Speaking at
the noon luncheon for the annual
business seminar hosted by the
lowa-Des Moines National Bank, Dr.
Laffer cited results from the tax cuts
initiated in 1961 by President John F.
Those results, he said, make it
imperative that a similar process be
pursued now in order to put the
United States back on its feet with
increased production, increased in­
come for all its people and decreased
Dr. Laffer classified administra­
tions of the past 60 years as
‘‘redistributionists ” or “ growthists. ’’
The former, he said, “take for
granted that output is a given
figure.” The latter, he contends,
“don’t believe output is fixed. They
Northwestern Banker, January, 1981
Federal Reserve Bank of St. Louis

believe the pie can be expanded by
private production and incentives.”
The new administration is an avowed
follower of the “growthist” philoso­
phy, he believes, and tax cuts,
consequently, will most certainly be a
priority item—not only for turning
the economy around, but as a strong
weapon to fight inflation in the
Dr. Laffer classified Harding,
Kennedy and Reagan as “growthists” and put practically all other
presidents in the “redistributionist”
category—Roosevelt, Truman, Ei­
senhower, Johnson, Nixon and
Citing the Kennedy administration
results liberally, Dr. Laffer said GNP
grew at a blA % annual rate,
unemployment dropped below AlA %
because the 1962 corporate tax cuts
gave incentives for capital invest­
ment that created jobs. “It was an era
of massive economic growth,” he
“There is a nationwide movement
to remove the redistributionists,”
Dr. Laffer said in his concluding

remarks, “and put in growthists.
Witness what has happened ii^
Massachusetts, Delaware, Califo®
nia, Minnesota, Wisconsin and other
states (he cited various tax cuts and
changes in each state). Further than
that, this move is seen in the worl^
around us. My vision of what’s going
to happen in the United States in the
next two decades is unprecedented
grow th, based on less taxes,
improved production, greater err^
ployment and increased tax collec­
tions on a lower base.”
Robert E. Lee, president and chief
executive officer of the lowa-Des
Moines National Bank, welcomed n
record crowd of 650 business people
to the Iowa Business Trends panel
which was presented prior to the
luncheon. The four panelists were
executive officers from the fields c£
agriculture, data communications,
management and meat packing.
After the panelists gave their
15-minute presentations, the confer­
ence was adjourned to the nearb®
ballroom where 550 were served
lunch, then heard Dr. Laffer’s
remarks. Summaries of the panelists
remarks follow;
Robert M. Powers, president anP
chief operating officer, A.E. Staley
Mfg. Co., Decatur, 111.: Com and
soybeans are becoming more valuable
due to their responsiveness to
technological progress. In addition tP
world-wide use in food products, the
soybean has applications for produc­
tion of paint, plastics, resins and
Technological progress is unloc
ing further uses of com, especially in
Iowa which has five corn refining
plants. For the midwest com farmer,
this industry is his second largest and
fastest growing market. Corn refinerP
in 1980 processed 500 million bushels
of com for a multitude of products.
The greatest technological advance
has been in developing corn
sweeteners—com syrups, dextros®
and high fructose syrups. The latter
is the newest and most important for
it is the first sweetener to compete
with sugar on a sweetness basis and i&
causing a revolution in that industry.
In 1980, 4 billion pounds of high
fructose corn syrup was used by the
nation’s producers of food products.
The beverage industry accounts fo #
one-fourth of all domestic sugar
consumption and today, 34 soft drink
and beverage producers in the U.S.
have approved high fructose corn
syrup to replace at least half of th #

Iowa News

ju g a r in their brands. The industry
®ow is adding 3 to 3.5 billion pounds
of new high fructose corn syrup
For the long-term, corn starch may
.jprove to be of even greater
Significance to the nation. The first
sign is the com refining industry’s
growing stake in producing power
alcohol for use in motor fuel
f ie n d s —gasohol. Production is being
stepped up to boost the output of
power alcohol to 500 million gallons
by late 1981. This translates into 200
million bushels of com. If all new
^plants on the board enter full
production, they will require one
billion bushels of corn. Iowa has
seven power alcohol plants an­
nounced, and 20 more will be built
^slsewhere in the midwest.
This is leading to more consump­
tion of the nation’s corn supply than
annual production—6.5 billion bu­
shels produced in 1980 and consump­
tio n estimated at 7.7 billion bushels.
For the long-term, Staley would
prefer to see technology developed
utilizing a waste biomass as the raw
material for an alternate fuel, rather
t h a n our feed grain crop, and we are
pursuing this with the federal
government and a noted eastern
Further use of corn may include
^developing products based on
petrochemicals that we use each day.
This will help recapture some lost
markets and initiate new ones.
T.N. Payne, m anager, office
|systems marketing, IBM Corpora­
tion, White Plains, N.Y.: Since the
launching of Sputnik I October 4,
1957, some important breakthroughs
have impacted our industry. For
Example, a million dollars of
hardware in the 1950s costs less than
$20 today; some of today’s systems
are 100,000 times faster than those in
the 1950s; today’s solid state circuits
•are 10,000 times more reliable than
the vacuum tube technology of the
Some experts estimate as much as
30% of the U.S. workforce relies on
•d a ta processing for its daily work. By
1985, it will increase to 70 %.
At IBM we are addressing the
future through a concept we call the
Enterprise System, an approach to
•th e merger of data processing, office
systems and communications. Its
basic elements include a central
computer complex, multi-function
terminals available to an increasing
►number of users; high-speed, wide­
band communications within the
Federal Reserve Bank of St. Louis


Iowa State Bank Plans New Building

DESIGNERS sketch of a new bank building for the Iowa State Bank at Center Point. A
traditional style will be carried inside as well as out. The bank will have three offices, three
teller stations and drive-up facilities. Completion is expected to be in June. Earl F. Kooker
& Associates bank design consultants of Spencer are handling the project for William R.
Bernau, chairman and president of the bank.

Enterprise; capability of interconnect
computer networks of unconnected
organizations via common carrier
facilities; office functions to increase
productivity of all workers.
Enterprise goals are to cut paper
flow; capture data once and use it
again and again; improve the
productivity of principals, profes­
sionals, managers, administrative,
clerical and other personnel. Office
workers make up 25% of the
workforce today. By 1985 they will
increase to 40% and by 1990 to over
We see a trend ahead of more
people doing their work outside the
office. For example, an electronic
briefcase for executives while travel­
ing or at home, and home terminals
for employes to complete work there
via contact with office terminals.
Teleconferencing is a new approach
to reducing the time, cost and effort
involved in problem solving or
decision making among people in
different parts of the country. This
can significantly reduce travel time
and cost associated with face to face
meetings. At IBM we use telecon­
ferencing extensively between our
centrally located engineering organi­
zations and our far flung manufactur­
ing facilities. We estimate our
teleconferencing the past year has
resulted in a savings of more than $1
million in travel alone—plus the
savings in time of the people
Donald R. Sloan, deputy chair­
man, Peat, Marwick, Mitchell & Co.,
New York: To cope with uncertain­

ties, the successful manager of the
1980s will learn to devote more of his
resources to long-range planning
efforts. Long-range planning is an
ongoing exercise closely integrated
into short-range operational planning
efforts. It is not a process for
predicting the future, but one for
intelligently selecting alternatives
that will best permit us to cope with
the uncertainties of the future.
Some of the measurement tools
that will impact decisions made by
managers include these:
Inflation—It is measured by the
Consumer Price Index, an unreliable
measure. The Labor Department is
supposed to revise this index
periodically and the last change was
made in 1973. It includes the cost of
housing, but most Americans don’t
buy a house every year. It does not
include taxes, and most Americans
do pay taxes every year. If we don’t
use this measure, then we must use
another, such as GNP deflator, which
is much broader. By this index, 1979
inflation would have been measured
at 10% rather than 13% calculated
by the CPI.
Unemployment rate—It includes
not only the truly unemployed but
also those seeking temporary work,
those on temporary layoff, those
looking for jobs but not yet available
for work, and those between jobs
which are temporary by thenn a tu re —construction, su b stitu te
teaching and the like. Eligibility
requirements for food stamps add
two percentage points to the
unemployment index. As managers,
we must understand the shortNorthwestern Banker, Janaury, 1981

Iowa News
comings of the unemployment index.
Money supply—The problem here
is one of concept. The measures have
been changed so much and managers
must understand them.
Financial measurement and dis­
closure—The next decade will require
the similar giant strides made in this
measurement in the past 10 years.
We will see a shift in importance from
profits as we now define them to cash
flow and liquidity ratios. Forecasting
will become more common, as will
reports on management performance.
The ’80s will see the historical cost
concept slowly replaced in impor­
tance by methods of reporting which
more truly reflect the realities of the
I predict that one of the great crises
of the 1980s will be the insufficient
funding of the nation’s pension
system—both public and private. I
hope I ’m wrong—but if I ’m not, the
impact on American business will be
Robert L. Peterson, president and
chief executive officer, Iowa Beef
Processors, Inc., D akota City,
Nebr.: The ’80s will bring social and
economic change at the state,

national and international level. The
biggest change will be in diets, social
habits and change caused by inflation
and interest rates. Inflation will
cause the consumer to have more
interest in protein than ever. At Iowa
Beef we’re prepared to move ahead in
the ’80s to cope with the changing
attitude of people to fit their budgets.
Without the production of Iowa
black soil being used in the world, we
won’t garner our share of the world’s
dollars, but we’re optimistic about
this. The only shortage we see coming
is food. The amount of recognition
given OPEC will be insignificant
when the shortage of food hits the
Last year Iowa sold $5 billion in
beef and $2 billion in pork. That’s
more pork the past year than ever
before and we see hogs going to $64
and ma1 oe even $70.
We t ill continue to automate so
that ir the future we will be able to
sell a pound of red meat for the same
or less than today. Before it’s over we
will be utilizing the entire animal
carcass for products not yet
produced—either edible or inedible

T h c te aTC

400 Attend Banquet
More than 400 cattlemen and
bankers from southw est Iowa
a tte n d e d the
1980 Council
Bluffs Savings
Bank Cattle
Feeder s B a n ­
quet. It was held
at the Lakeshore
Country Club in
Council Bluffs.
Ed H. Spetman, bank chair­
man of the board
and president, pointed out that thU
event, which was begun more than 50
years ago, is held annually in
recognition of the close working
relationship between banks and
Guests at the banquet were treated
to “good Iowa corn-fed beef,”
according to Doug Larson of
Underwood, who raised and showed
one of the two steers bought by the®
bank for the occasion. Dave Casson,
also of Underwood, raised the other
Savings bonds were presented to
two young women who raised th®
West Pottawattamie County 4-H
baby beef champions for 1980. They
were Lori Thomas Overholtzer of
Honey Creek, grand champion
winner and Cheryle Grosvenor o®
Underwood, reserve grand champion
Featured speakers were Henry
Schriver, a farmer-philosopher from
Grafton, Ohio, and E.H. Shoemaker,®
Jr., North Platte, Nebr.
Llewellyn Metcalf Dies
Llewellyn J. Metcalf, 70, retired®
president of the Exchange State
Bank of Lime Springs, died recently.
He was a graduate of the University
of Minnesota Law School, and
engaged in private practice of law in®
Osakis, Minn. In 1951, Mr. Metcalf
became president of the Farmers
State Bank in Hope, Minn. In 1962,
Mr. Metcalf purchased the Exchange
State Bank of Lime Springs, and®
continued as its president until 1977
when he retired.


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S P E N C E R ,IO W A 5 1 3 0 1

for FRASERBanker. January. 1981
Federal Reserve Bank of St. Louis

low a News

Jtotanical Center Display
“Holiday Wonderland,” the Des
Moines Botanical Center’s annual
poinsettia show, continues through
February 3.
0 Featuring more than 5,000 poin­
settia plants and special holiday
displays of larger-than-life toys, this
year’s show is sponsored by Bankers
Trust, Des Moines.
• “We’re pleased to support this
growing holiday tradition in Des
Moines,” commented Herman Kü­
pper, president and chief executive
officer of Bankers Trust. “We hope
• a ll of our friends and customers will
be able to enjoy this colorful
poinsettia extravaganza. ’’
“Holiday Wonderland” wUl fea­
ture dozens of poinsettia varieties,
•from the traditional red, white and
pink-leafed types to the seldon-seen,
pink-and-white “marble” poinsettia,
as well as several experimental
• Shrubby specimens up to five feet
tall will dot the Botanical Center’s
dome, and a poinsettia “tree” wül rise
above the quiet waters of the Center’s
lower pool.
• Viewing hours are 10:00 a.m. - 6:00
p.m. Monday through Thrusday,
10:00 a.m. - 9:00 p.m. Friday, and
10:00 a.m. - 5:00 p.m. Saturday and
• “Last year, more than 62,000
people viewed the Botanical Center’s
poinsettia show, Mr. Küpper re­
marked. “This year’s show promises
to be even bigger and better, so we
• wanted to help bring it to a larger
audience. I t’s our way of wishing the
people of our community a happy
holiday season from all of us at
Bankers Trust.”
Miracle Mile Branch Opens
First National Bank of Clinton’s
new Miracle Mile Branch on Highway
£ 30 West has officially opened for
business. A public open house with
prizes was held.
The branch fadlity expands First
National Bank’s abüity to serve the
q community, particularly the west
and south sections of Clinton. It will
offer both drive-up and lobby service
including loans, safe deposit boxes,
savings accounts and checking
• accounts.
Donna Pinter has been named vice
president and manager of the Miracle
Mile Branch. Her staff includes
assistant manager Bruce Christen• sen, Deb Cozzolino, Kathy Larson
and Sharon Sloan.
Federal Reserve Bank of St. Louis


W ere interested in m aking
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For you.

t Security Bank we’re peoL pie with an interest in
your success. People you can
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Security Correspondent Bankers
Top to Bottom
Jim Hongslo
Steve Hatz
Ken Roeder
Wilma Weeks
Jim Young

People with
an interest
in you.

Western Iowa’s Largest

7 1 2 / 277-6554 MEMBER F.DJ.C.

© 1 9 8 0 Security National Bank

Northwestern Banker, Janaury, 1981


In the
The package arrived from the and found a briefcase that contained
counterfeiter. But when the crook $500,000, a half million dollars in
opened it, he found he had spent his cash! What would you do?”
good money for a batch of $18 bills
Little Johnny in the back row
instead of the $20 bills which he had raised both his hands and the teacher
ordered. Since complaints were called on him.
frowned upon by his supplier, he
“Well,” said Johnny, “if it
decided to try passing them off on belonged to a poor family, I would
some unsuspecting hill folk deep in return it!”
the heart of the Ozarks. At a
☆ ☆ ☆
crossroads general store, he presen­
A desconsolate-looking farmer
ted one of the bills and asked for
“Sure thing,” said the storekeeper.
Howdy a want it —two nines or three
☆ ☆ ☆
Overheard: “My wife loves to buy
anything marked down. Today she
came home from the store with two
dresses and an escalator.”


stood on the steps of the town hall
during a political meeting.
“Who’s talking in there now?”
demanded a stranger briskly. “Or are
you just going in?”
“ I ’ve just come out,” said the
farmer. “Congressman Smiffkins is#
talking in there.”
“What about?” asked the other.
“Well,” continued the farmer,
puzzled, “he didn’t say.”


A golfer sliced the ball from the tee
over the hill into a valley. Hearing a
yell, he dashed over the brow of the
hill to see a man lying unconscious.
When he ran up to the prone man,
the stricken fellow opened one eye
and said calmly, “I ’m a lawyer and
I’m going to sue you for $5,000.”
“ I ’m so sorry,” the other golfer
replied, “but I did yell ‘fore.’ ”
“ I ’ll take it,” said the lawyer.
☆ ☆ ☆
“What do you mean by publicly
insulting me in your newspaper?”
roared the politician.
Editor: “Now just a minute. You
told us you resigned as City
“ I did,” shot back the politician.
“But where did you put the news?
You put it in the column devoted to
publuc improvements.”
☆ ☆ ☆
A schoolteacher tried to impress
her pupils about the need to be honest
in all things.
“ Suppose,” she asked the class,
“you were walking along Main Street
Banker, January, 1981
Federal Reserve Bank of St. Louis

First National Bank, Minneapolis ..........
First National Bank, Omaha ...................
First National Bank, St. Paul ..................
First National Bank, St. Paul (Bonds) . . .
First National Bank, Sioux City ..............
Gross Co., Kirk, Waterloo .....................

Acorn Printing Co........................................................
American Express Travelers Cheques ......................
American Natl. Bank&TrustCo., Chicago ..............
American Natl. Bank & Trust Co., St. Paul ..............
Associates Commercial Corp.....................................


Banco Financial/Lease Northwest .......................... 31
BankersTrust Co., Des Moines ............................... 68
Brandt Systems ......................................................... 85
Carroll, McEntee&McGinley ...................................
Central Bank of Denver ....................................... 58-59
Central Natl. Bank & Trust Co., Des Moines ............ 77
Commercial National Bank, Peoria ......................... 39
Continental Bank, Chicago ..................................... 11
Control-o-fax, Waterloo ........................................... 82
Daktronics, Inc............................................................. 10
Deluxe Check Printers, Inc.......................................... 3
Drovers Bank of Chicago ......................................... 79
First National Bank, Lincoln

................................... 62

. . 65
.. 51<
. . 15^
. . 73
. . 71

Iowa Bankers Insurance & Services ........
lowa-Des Moines National Bank ............

. . 75

KookerConsultants, E.F...........................


Merchants National Bank, Cedar Rapids
Midland National Bank, Minneapolis
National Bank of Commerce, Lincoln
Northwestern National Bank, Minneapolis
Northwestern National Bank, Sioux City .
Omaha National Bank


Security National Bank, Sioux City ..........
SLT Warehouse Co.......................................
Travelers Express Co...................................

. .


. . 2'

. . 49
. . 17
. . 67
. . 43
. . 70
46-47 (
. . 83
.. 19

. . 20
United States Check Book Co......................
. . 72
United States National Bank, Omaha . . .
. 4-5
Van WagenenCo., G.D................................................ 16 £

Westcap Corporation





Tour the Brandt, Inc. manufacturing plant in W atertown, Wisconsin, and
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We check and double check every product before i t ’s shipped to you —
w ith up to 86 different tests. Everything from a “ hot room ” where we
m onitor for electrical safety during extended use, to tensile strength
tests on key components.
And, new products undergo a “ quality audit.” That means we take a
product apart and examine it piece by piece. If a part doesn’t measure up
to standards, i t ’s rejected. Period.
We believe you desen/e a quality product, delivered on tim e. That’s been
our philosophy for the past 90 years, and we don’t intend to change it.
Because now, more than ever, a lot of im portant people are counting on us.
At the heart of every Brandt sorter is a casting we pour in our
own foundry.

Brandt, Inc. W atertown, Wl 53094

Brandt® Cashier® Countess®

everyone counts on us
Federal Reserve Bank of St. Louis


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Member FDIC An Affiliate of Northwest Bancorporation (BANCO)
7th & Walnut, Des Moines, Iowa 5 0 3 0 4 (5 1 5 ) 245-3131

Lance Davenport Bernie Kersey
Federal Reserve Bank of St. Louis

Bob Buenneke

Linda Collins

John Rigler

Garry Frandson

Mark Conway

Dorothea Wolfe